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Poverty Reduction in Urban China: The Impact of Cash Transfers

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  • Wu, Alfred M.
  • Ramesh, M.

Abstract

The extent to which social protection programs in general and targeted programs in particular actually alleviate poverty has been a central issue in development debates for decades. The objective of this paper is to contribute to the debate by empirically examining the poverty-alleviation effects of one of the largest targeted programs in the world: the Minimum Living Standard Assistance (MLSA) or Dibao in China. Using newly available data on MLSA spending and a unique panel survey dataset covering the 1993-2009 period, this research investigates the impact of the MLSA on poverty alleviation. The analyses using fixed- and random- effects logit models and hierarchical liner models offer insights that go beyond the existing studies on the subject. Findings from the study confirm that targeted social protection programs are an effective tool for reducing poverty.

Suggested Citation

  • Wu, Alfred M. & Ramesh, M., 2014. "Poverty Reduction in Urban China: The Impact of Cash Transfers," MPRA Paper 54358, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:54358
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    References listed on IDEAS

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    Cited by:

    1. Westmore, Ben, 2018. "Do government transfers reduce poverty in China? Micro evidence from five regions," China Economic Review, Elsevier, vol. 51(C), pages 59-69.
    2. Jiandong Chen & Ping Wang & Jixian Zhou & Malin Song & Xinyue Zhang, 2022. "Influencing factors and efficiency of funds in humanitarian supply chains: the case of Chinese rural minimum living security funds," Annals of Operations Research, Springer, vol. 319(1), pages 413-438, December.
    3. Bing Wang & Longmei Xia & Alfred M. Wu, 2022. "Social Development with Public Value: An International Comparison," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(2), pages 909-934, July.
    4. Shiyou Wu & Mimi V. Chapman & Meihua Zhu & Xiafei Wang, 2020. "Household Assets, the Role of Government Assistance, and Depression Among Low-Income Families in Shanghai," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(2), pages 571-584, June.
    5. Zhonghao Zhang & Shimeng Sun & Wanzhen Chen & Xuesong He, 2023. "Spatiotemporal patterns in China's Minimal Living allowances: The urban‐rural gap and regional differences revealed through a national poverty alleviation program," Growth and Change, Wiley Blackwell, vol. 54(1), pages 214-233, March.
    6. Qin Gao & Fuhua Zhai, 2017. "Public Assistance, Economic Prospect, and Happiness in Urban China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(1), pages 451-473, May.
    7. Vardges Hovhannisyan & Aleksan Shanoyan, 2020. "An Empirical Analysis of the Welfare Consequences of Rising Food Prices in Urban China: The Easi Approach," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 796-814, December.
    8. Qin Gao & Shiyou Wu & Fuhua Zhai, 2015. "Welfare Participation and Time Use in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(3), pages 863-887, December.

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    More about this item

    Keywords

    Dibao; poverty; public assistance; development policy; China;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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