As a sort of human capital, health is a concrete manifestation of human productivity.At home and abroad, there are many empirical studies focusing on the economic effects of health that have been conducted, but the research methods have not paid enough attention to the endogeneity of health in those studies.This paper evaluates the effects of health on the income of rural residents in China with the micro panel data from China Health and Nutrition Survey.To get reliable results, the paper controls the endogenity of health by using simultaneous equation model and solves the parameters by using the three-stage least squares method.The study found that health has significantly positive effects on the income of rural residents in China, a conclusion which is in conformity with the economic effects of health.To improve the health of rural residents and fully implement the economic effects of health, the study recommends the government to put more efforts on promoting healthcare services, health-related education, and improving the living standards of rural residents in China.