Poverty Reduction in Urban China: The Impact of Cash Transfers

Wu, Alfred M.; Ramesh, M.

doi:10.1017/s1474746413000626

Cited by 29 publications

(24 citation statements)

References 42 publications

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“…Based on previous research on Dibao (Du & Park, 2007;Gao, Garfinkel, & Zhai, 2009;Gustafsson & Deng, 2011;Wang, 2007;Wu & Ramesh, 2014), this study uses household heads' individual characteristics as control variables, including age, gender, Chinese Communist Party (CCP) membership, being ethnic minority, marital status, education level (i.e., illiterate, primary school, junior middle school, and high school or above), employment status, and self-perceived health status (i.e., good, fair, and bad health). We also control for household characteristics, including household size, the number of children under age 18 and the number of members older than age 60 (i.e., none, one, and two or more), and region of residence.…”

Section: Methodsmentioning

confidence: 99%

“…The characteristics that are predictive of Dibao receipt include poor health or disability, unemployment, low education, large household size, and living in a less developed region Gustafsson & Deng, 2011;Wu & Ramesh, 2014). A few recent studies have explored the possible effects of Dibao receipt on family consumption patterns.…”

Section: Welfare Participation In China: the Dibao Programmentioning

confidence: 99%

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Welfare Participation and Time Use in China

Gao

Zhai

2014

Soc Indic Res

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Using the newly available China Family Panel Studies (CFPS) 2010 survey data and a propensity score matching method with tobit regressions, this study examines the possible influence of participation in China's primary welfare program, Dibao, on household head's time use pattern in both urban and rural areas. We find that Dibao lowered recipients time spent on various leisure and social activities and increased their idle time for both urban and rural residents. Urban Dibao recipients also tended to spend less time on education activities, while rural Dibao recipients spent more time on personal care and household activities such as housekeeping and sleeping or resting. Urban Dibao recipients spent more time on work-related activities on typical non-work days, while rural Dibao recipients spent less time on work activities on typical work days. These findings provide pioneering evidence on the possible link between welfare participation and time use patterns in the global welfare literature. As Dibao is constantly expanding, the empirical evidence from this article suggests that Dibao might have some unintended adverse effects on recipients, including less time spent on leisure and social activities, reduced work and education activities or increased underground employment, and more time spent on being idle. Future reforms of Dibao and its supplementary policies and programs need to consider how best to promote both the economic and holistic well-being of the participants.

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Section: Methodsmentioning

confidence: 99%

Section: Welfare Participation In China: the Dibao Programmentioning

confidence: 99%

Welfare Participation and Time Use in China

Gao

Zhai

2014

Soc Indic Res

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“…Du & Park [ 5 ] believe that the governmental transfer system in urban China can effectively target the poor and help them out of the poverty trap. Wu and Ramesh [ 6 ] empirically study poverty-reduction effects of the Minimum Living Standard Assistance Program in China. They find that governments directly giving money to the poor is proved to be an effective tool for poverty reduction [ 6 ].…”

Section: Introductionmentioning

confidence: 99%

Escaping from poverty trap: a choice between government transfer payments and public services

Chen¹,

Li²,

Lu³

et al. 2017

glob health res policy

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BackgroundAnti-poverty has always been an important issue to be settled. What policies should be selected to help individuals escaping from the poverty trap: by directly offering transfer payments or indirectly providing public services? This paper is among the first to explore the effects of public anti-poverty programs system in China.MethodsWe Using unbalanced panel data of China Health and Nutrition Survey (CHNS) from 1989 to 2009, we demonstrate how the individual poverty status is determined through a four-staged simultaneous model. We choose the 3SLS (Three Staged Linear Squared) methodology to do the estimation.ResultsGTPs (Government Transfer Payments) don’t have positive effects on poverty reductions. The results demonstrate that GTPs increasing by 10% makes private transfer payments decrease by 3.9%. Meanwhile, GTPs increasing by 10% makes the household income decreased by 27.1%. However, public services (such as medical insurance, health services, hygiene protection etc.) have significantly positive impacts on poverty reduction. Public services share a part of living cost of the poor, and are conducive for people to gain higher household income.ConclusionsGTPs given by governments are not effective in reducing the poverty, as a result of “crowd-out effect” and “inductive effect”. However, public services are suggested to be adopted by governments to help the poor out of the poverty trap.

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“…Gao et al (2009) suggested that the dibao program lowers the poverty rate somewhat and reduces the poverty gap substantially for eligible participants; however, they too point out dibao's lack of coverage and delivery. More recently, Wu and Ramesh (2014) confirmed that dibao is an effective tool for reducing poverty, whereas Golan et al (2014) found income transfer under the rural dibao program's was sufficient for the recipients but the overall poverty reduction effect was limited due to coverage issues and targeting errors. In summary, this literature confirms the poverty reduction effect of China's dibao programs, although narrow coverage and targeting errors might have limited their effectiveness.…”

Section: Impacts Of Food Policy Of India and China On National And Glmentioning

confidence: 99%

Food security policies in India and China: implications for national and global food security

Elleby

Zobbe

2015

Food Sec.

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Food insecurity is a much more serious concern in India than China. In addition to income and poverty differences, we argue in this paper that differences in food policies can further explain the different food security outcomes across the two countries. First, India mostly uses price-based input subsidies to support agricultural incentives whereas China has recently adopted direct transfers to support agricultural incentives, which are believed to be less distorting and more efficient. Second, the two countries apply quite different approaches to address poor consumers' access to food, with India adopting a widely criticized public distribution system and China mainly using direct income transfers and other social safety nets. Third, although both committed considerable fiscal resources to insulating their respective domestic markets, especially during recent food price spikes, India's heavy dependence on price-based measures causes relatively larger and more volatile fiscal burdens, thereby likely making it more vulnerable in dealing with similar events in the future. These findings have important implications for food policy and food security in the two countries in the future.

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Poverty Reduction in Urban China: The Impact of Cash Transfers

Abstract: The extent to which social protection programs in general

Cited by 29 publications

References 42 publications

Welfare Participation and Time Use in China

Welfare Participation and Time Use in China

Escaping from poverty trap: a choice between government transfer payments and public services

Food security policies in India and China: implications for national and global food security

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