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Poverty Reduction in Urban China: The Impact of Cash Transfers

Published online by Cambridge University Press:  31 January 2014

Alfred M. Wu  and
M. Ramesh
Alfred M. Wu
Affiliation:
Department of Asian and Policy Studies, The Hong Kong Institute of Education E-mail: wumuluan@ied.edu.hk
M. Ramesh
Affiliation:
Department of Asian and Policy Studies, The Hong Kong Institute of Education E-mail: mramesh@nus.edu.sg
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Abstract

The extent to which social protection programmes in general, and targeted programmes in particular, actually alleviate poverty has been a central issue in development debates for decades. The objective of this article is to contribute to the debate by empirically examining the poverty-alleviation effects of one of the largest targeted programmes 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 to 2009 period, this research investigates the impact of the MLSA on poverty alleviation. The analyses using fixed-effects 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 programmes are an effective tool for reducing poverty.

Keywords

Dibaopovertypublic assistancedevelopment policyChina
Type
Themed Section on Managing Social Change and Social Policy in Greater China: Welfare Regimes in Transition?
Information
Social Policy and Society , Volume 13 , Issue 2 , April 2014 , pp. 285 - 299
Copyright
Copyright © Cambridge University Press 2014 

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