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Urban Poverty In China And Its Contributing Factors, 1986-2000

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  • Xin Meng
  • Robert Gregory
  • Guanhua Wan

Abstract

Food price increases and the introduction of radical social welfare and enterprise reforms during the 1990s generated significant changes in the lives of urban households in China. During this period urban poverty increased considerably. This paper uses household level data from 1986 to 2000 to examine what determines whether households fall below the poverty line over this period and investigates how the impact of these determinants has changed through time. We find that large households and households with more nonworking members are more likely to be poor, suggesting that perhaps the change from the old implicit price subsidies, based on household size, to an explicit income subsidy, based on employment, has worsened the position of large families. Further investigation into regional poverty variation indicates that over the 1986-93 period food price increases were also a major contributing factor. Between 1994 and 2000 the worsening of the economic situation of state sector employees contributed to the poverty increase. Copyright � 2007 The Authors; Journal compilation � International Association for Research in Income and Wealth 2007.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

Volume (Year): 53 (2007)
Issue (Month): 1 (03)
Pages: 167-189

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Handle: RePEc:bla:revinw:v:53:y:2007:i:1:p:167-189

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Cited by:
  1. Russell Smyth & Ingrid Nielsen & Qingguo Zhai, 2009. "Personal Well-Being In Urban China," Development Research Unit Working Paper Series 01-09, Monash University, Department of Economics.
  2. Steef Baeten & Tom Van Ourti & Eddy Van Doorslaer, 2012. "Rising Inequalities in Income and Health in China: Who is left behind?," Tinbergen Institute Discussion Papers 12-091/V, Tinbergen Institute.
  3. Wu, Alfred M. & Ramesh, M., 2014. "Poverty Reduction in Urban China: The Impact of Cash Transfers," MPRA Paper 54358, University Library of Munich, Germany.
  4. Farhad Noorbakhsh & Zhikai Wang, 2010. "Interprovincial disparities in China since the reforms: convergence or divergence?," Working Papers 2010_11, Business School - Economics, University of Glasgow.
  5. Luo, Xubei & Zhu, Nong, 2008. "Rising income inequality in China : a race to the top," Policy Research Working Paper Series 4700, The World Bank.
  6. Chi, Wei & Li, Bo & Yu, Qiumei, 2007. "Decomposition of Changes in Earnings Inequality in China: A Distributional Approach," MPRA Paper 3806, University Library of Munich, Germany.
  7. Xiao Luo & Chor-Ching Goh & Nong Zhu, 2014. "Income Growth, Inequality and Poverty Reduction: A Case Study of Eight Provinces in China," CIRANO Working Papers 2014s-03, CIRANO.
  8. Sumie Sato & Mototsugu Fukushige, 2010. "The Chinese Economy and Income Inequality among East Asian Countries," Discussion Papers in Economics and Business 10-06, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).

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