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Welfare Participation Reduced Severe Child Multidimensional Poverty in Rural China: Better Targeting Can Lead to Greater Poverty Reduction

Author

Listed:
  • Qin Gao

    (Columbia University)

  • Fuhua Zhai

    (Fordham University)

  • Yi Wang

    (University of Illinois)

Abstract

Dibao (or the Minimum Livelihood Guarantee) is China’s primary social assistance program and serves as a safety net for families in poverty. This article examines the effects of rural Dibao receipt on severe child multidimensional poverty using the nationally representative China Household Income Project (CHIP) 2013 and 2018 data. Multidimensional poverty is measured by seven dimensions, including water, sanitation facilities, shelter, education, health, information, and consumer durables. Propensity score matching analysis reveals that rural Dibao receipt in 2018 were associated with reductions in severe child multidimensional poverty as measured by deprivations in four or more dimensions, but the same effect was not detected in 2013. Simulation analysis results indicate even greater reductions in severe child multidimensional poverty associated with rural Dibao receipt in 2018 if accurate targeting could be achieved. Based on these findings, this study makes several policy recommendations, including broadening rural Dibao’s population coverage and enhancing its targeting performance, adopting additional policies that specifically target children or families with children, and linking Dibao with these additional policies to meet the survival and developmental needs of children.

Suggested Citation

  • Qin Gao & Fuhua Zhai & Yi Wang, 2022. "Welfare Participation Reduced Severe Child Multidimensional Poverty in Rural China: Better Targeting Can Lead to Greater Poverty Reduction," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 15(3), pages 913-932, June.
    • Handle: RePEc:spr:chinre:v:15:y:2022:i:3:d:10.1007_s12187-021-09885-2
    DOI: 10.1007/s12187-021-09885-2
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    References listed on IDEAS

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    1. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
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    4. Golan, Jennifer & Sicular, Terry & Umapathi, Nithin, 2017. "Unconditional Cash Transfers in China: Who Benefits from the Rural Minimum Living Standard Guarantee (Dibao) Program?," World Development, Elsevier, vol. 93(C), pages 316-336.
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