Financial literacy, social security, and healthcare cost anxiety in China

Abstract

This study examines the impact of financial literacy and social security on healthcare cost anxiety in China using data from the
2021 Global Financial Inclusion database. Employing an ordered logit model and its marginal effects, we analyse how these factors
influence varying levels of healthcare cost anxiety (worried, somewhat worried, and not worried at all) across total, female-headed
and male-headed households. Financial literacy and social security both demonstrate significant negative effects on healthcare cost
anxiety across all household types. It implied that individuals who save for old age and those with social security coverage are less
likely to experience high levels of healthcare cost anxiety. The ordered logit results show consistent negative coefficients for
financial literacy and social security across all household categories. Marginal effects analysis further illustrates how these factors
affect the probability of falling into each category of healthcare cost anxiety. These findings underscore the importance of
promoting financial literacy and expanding social security coverage as potential strategies to alleviate healthcare cost anxiety in
China.