This　paper　examines　the　effect　of　the　New　Rural　Pension　Scheme　(NRPS)　on　the　labor　supply　behavior　of　the　elderly　in　rural　China.　Using　pooled　data　from　two　waves　of　the　China　Health　and　Retirement　Longitudinal　Survey　(CHARLS)　and　an　analytical　framework　of　combination　of　regression　discontinuity　design　and　difference　in　difference　method　(RD-DiD),　we　find　no　evidence　that　pension　receipt　from　the　NRPS　program　does　significantly　induce　the　elderly　to　withdraw　from　the　labor　market　The　heterogeneous　effects　by　health　status　indicate　that　pension　recipient　slightly　decreases　the　probability　of　labor　force　participation　for　those　individuals　with　chronic　diseases;　however,　the　effect　is　not　statistically　significant　The　empirical　findings　suggest　that　the　introduction　of　the　NRPS　program　does　not　improve　the　welfare　effect　of　the　originally　targeted　elder　individuals　with　illness.　(C)　2016　Elsevier　Inc.　All　rights　reserved.