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Across a few prohibitive miles: The impact of the Anti-Poverty Relocation Program in China

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  • Zhang, Li
  • Xie, Lunyu
  • Zheng, Xinye

Abstract

Many households are confined to remote rural villages in the developing world. This study examines the Anti-Poverty Relocation Program in China, considering the village-to-town relocation from agricultural to non-agricultural sectors induced by the program. While exploring a novel administrative data set on impoverished people in a Chinese county, we discovered that the program significantly increased the participants’ income by 9.61%, driven mainly by the increase in wage income. The empirical findings are consistent with the Roy-model perspective, which states that rural households with comparative advantage in non-agricultural sectors could benefit from relocation to nearby towns. This study provides new evidence that mobility barriers across sectors exist even on a small geographic scale in rural areas. The results of the cost–benefit analysis suggest that relocation of households in remote rural areas is a feasible policy tool for overcoming such mobility barriers.

Suggested Citation

  • Zhang, Li & Xie, Lunyu & Zheng, Xinye, 2023. "Across a few prohibitive miles: The impact of the Anti-Poverty Relocation Program in China," Journal of Development Economics, Elsevier, vol. 160(C).
    • Handle: RePEc:eee:deveco:v:160:y:2023:i:c:s0304387822000931
    DOI: 10.1016/j.jdeveco.2022.102945
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    1. Zhou, Yunbo & Huang, Xingzi & Shen, Yangyang & Tian, Liu, 2023. "Does targeted poverty alleviation policy lead to happy life? Evidence from rural China," China Economic Review, Elsevier, vol. 81(C).
    2. Xiao, Han & Song, Feng & Zheng, Xinye & Chen, Jiaying, 2023. "Community-based energy revolution: An evaluation of China's photovoltaic poverty alleviation Program's economic and social benefits," Energy Policy, Elsevier, vol. 177(C).

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    More about this item

    Keywords

    Migration; Poverty alleviation; Sectoral change;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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