Abstract: The free flow of the labor force is of great significance for the balanced development between regions and the optimal allocation of human capital. Taking the implementation of the policy for the direct settlement of medical treatment in different locations as a quasi-natural experiment, this paper conducts an empirical study based on the data of China Migrants Dynamic Survey (CMDS) from 2013 to 2018. The findings show that the implementation of the direct settlement policy for medical treatment in different locations can significantly promote the intra-provincial mobility of rural labor. The mechanism analysis indicates that this policy can facilitate the family migration of the rural labor force. If the emotional needs of migrating populations to reunite with their families can be met, their willingness to move will increase. At the same time, since the policy is implemented, the labor supply of migrating families has increased, and the probability of engaging in entrepreneurial and business activities with higher premium income has risen, leading to an increase in the total income level of migrating families, which will in turn enhance their willingness to move into the cities. The heterogeneity analysis reveals that the mobility decisions of the married, previously migrated, relatively older, and relatively less healthy rural labor force are more significantly affected by the policy. In large cities with relatively developed economies and abundant medical resources, the policy can play a better role in attracting the rural labor force to migrate in. Therefore, the various regions should further optimize the direct settlement policy for medical treatment in different locations and the related supporting measures, and incorporate the family factors into the formulation process of medical security policies, so as to facilitate the free flow of labor force and promote the transformation of their mobility mode towards family-based mobility.

Key words: direct settlement of medical treatment in different locations, rural labor force, mobility decision, family migration