IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v38y2010i7p989-1000.html
   My bibliography  Save this article

How Does Public Assistance Affect Family Expenditures? The Case of Urban China

Author

Listed:
  • Gao, Qin
  • Zhai, Fuhua
  • Garfinkel, Irwin

Abstract

Summary Using recent national household survey data and a propensity score matching method, this study examines the effects of urban China's primary public assistance program--Minimum Living Standard Assistance (MLSA)--on family expenditures, an important yet understudied indicator of family material well-being. We find that families receiving MLSA prioritized human capital investment (i.e., paying for education and health) rather than making the ends meet (e.g., paying for food, clothing, rent, and utilities). The policy implications of these findings are discussed.

Suggested Citation

  • Gao, Qin & Zhai, Fuhua & Garfinkel, Irwin, 2010. "How Does Public Assistance Affect Family Expenditures? The Case of Urban China," World Development, Elsevier, vol. 38(7), pages 989-1000, July.
    • Handle: RePEc:eee:wdevel:v:38:y:2010:i:7:p:989-1000
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-750X(09)00234-4
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bruce D. Meyer & James X. Sullivan, 2003. "Measuring the Well-Being of the Poor Using Income and Consumption," NBER Working Papers 9760, National Bureau of Economic Research, Inc.
    2. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    3. Jalan, Jyotsna & Ravallion, Martin, 2003. "Estimating the Benefit Incidence of an Antipoverty Program by Propensity-Score Matching," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(1), pages 19-30, January.
    4. Heinrich, Carolyn J., 2007. "Demand and Supply-Side Determinants of Conditional Cash Transfer Program Effectiveness," World Development, Elsevier, vol. 35(1), pages 121-143, January.
    5. Meiyan Wang, 2007. "Emerging Urban Poverty and Effects of the Dibao Program on Alleviating Poverty in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 15(2), pages 74-88, March.
    6. Gustafsson, Björn Anders & Quheng, Deng, 2007. "Social Assistance Receipt and its Importance for Combating Poverty in Urban China," IZA Discussion Papers 2758, Institute of Labor Economics (IZA).
    7. Imbens, Guido W. & Lemieux, Thomas, 2008. "Regression discontinuity designs: A guide to practice," Journal of Econometrics, Elsevier, vol. 142(2), pages 615-635, February.
    8. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    9. Case, Anne & Deaton, Angus, 1998. "Large Cash Transfers to the Elderly in South Africa," Economic Journal, Royal Economic Society, vol. 108(450), pages 1330-1361, September.
    10. Bryson, Alex & Dorsett, Richard & Purdon, Susan, 2002. "The use of propensity score matching in the evaluation of active labour market policies," LSE Research Online Documents on Economics 4993, London School of Economics and Political Science, LSE Library.
    11. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
    12. Zai Liang, 2001. "The Age of Migration in China," Population and Development Review, The Population Council, Inc., vol. 27(3), pages 499-524, September.
    13. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    14. Neeraj Kaushal & Qin Gao & Jane Waldfogel, 2006. "Welfare Reform and Family Expenditures: How are Single Mothers Adapting to the New Welfare and Work Regime?," NBER Working Papers 12624, National Bureau of Economic Research, Inc.
    15. Meyer, Bruce D. & Sullivan, James X., 2004. "The effects of welfare and tax reform: the material well-being of single mothers in the 1980s and 1990s," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1387-1420, July.
    16. Qin Gao & Irwin Garfinkel & Fuhua Zhai, 2009. "Anti‐Poverty Effectiveness Of The Minimum Living Standard Assistance Policy In Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(s1), pages 630-655, July.
    17. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    18. Michael Lechner, 2002. "Some practical issues in the evaluation of heterogeneous labour market programmes by matching methods," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 165(1), pages 59-82, February.
    19. Himaz, Rozana, 2008. "Welfare Grants and Their Impact on Child Health: The Case of Sri Lanka," World Development, Elsevier, vol. 36(10), pages 1843-1857, October.
    20. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
    21. Jennifer Hill & Jane Waldfogel & Jeanne Brooks-Gunn, 2002. "Differential effects of high-quality child care," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(4), pages 601-627.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Valerio Mendoza, Octasiano Miguel & Borsi, Mihály Tamás & Comim, Flavio, 2022. "Human capital dynamics in China: Evidence from a club convergence approach," Journal of Asian Economics, Elsevier, vol. 79(C).
    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. 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.
    4. 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.
    5. Adachi, Yoshimi & Kitamura, Tomoki, 2021. "Impact of the Financial Support Program for High School Students in Japan," MPRA Paper 106769, University Library of Munich, Germany.
    6. Yingfeng Fang & Fen Zhang, 2021. "The Future Path To China’s Poverty Reduction—Dynamic Decomposition Analysis With The Evolution Of China’s Poverty Reduction Policies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 507-538, December.
    7. Huang, Xian & Wu, Bingxiao, 2020. "Impact of urban-rural health insurance integration on health care: Evidence from rural China," China Economic Review, Elsevier, vol. 64(C).
    8. 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.
    9. Gao, Qin & Zhai, Fuhua & Yang, Sui & Li, Shi, 2014. "Does Welfare Enable Family Expenditures on Human Capital? Evidence from China," World Development, Elsevier, vol. 64(C), pages 219-231.
    10. Zhao, Xi & Wang, Julia Shu-Huah, 2021. "The effects of multiple welfare program participatifon on educational expenditures and time use: Evidence from the social safety net in China," Children and Youth Services Review, Elsevier, vol. 131(C).
    11. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    2. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    3. Winterhager, Henrik & Heinze, Anja & Spermann, Alexander, 2006. "Deregulating job placement in Europe: A microeconometric evaluation of an innovative voucher scheme in Germany," Labour Economics, Elsevier, vol. 13(4), pages 505-517, August.
    4. Feddersen, Arne & Maennig, Wolfgang, 2012. "Sectoral labour market effects of the 2006 FIFA World Cup," Labour Economics, Elsevier, vol. 19(6), pages 860-869.
    5. Carlos A. Flores & Oscar A. Mitnik, 2013. "Comparing Treatments across Labor Markets: An Assessment of Nonexperimental Multiple-Treatment Strategies," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1691-1707, December.
    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. Gao, Qin & Zhai, Fuhua & Yang, Sui & Li, Shi, 2014. "Does Welfare Enable Family Expenditures on Human Capital? Evidence from China," World Development, Elsevier, vol. 64(C), pages 219-231.
    8. Richard K. Crump & V. Joseph Hotz & Guido W. Imbens & Oscar A. Mitnik, 2006. "Moving the Goalposts: Addressing Limited Overlap in the Estimation of Average Treatment Effects by Changing the Estimand," NBER Technical Working Papers 0330, National Bureau of Economic Research, Inc.
    9. Jeffrey Smith & Arthur Sweetman, 2016. "Viewpoint: Estimating the causal effects of policies and programs," Canadian Journal of Economics, Canadian Economics Association, vol. 49(3), pages 871-905, August.
    10. Chad D. Meyerhoefer & Muzhe Yang, 2011. "The Relationship between Food Assistance and Health: A Review of the Literature and Empirical Strategies for Identifying Program Effects," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(3), pages 304-344.
    11. Liane Faltermeier & Awudu Abdulai, 2009. "The impact of water conservation and intensification technologies: empirical evidence for rice farmers in Ghana," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 365-379, May.
    12. Ferraro, Paul J. & Miranda, Juan José, 2014. "The performance of non-experimental designs in the evaluation of environmental programs: A design-replication study using a large-scale randomized experiment as a benchmark," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 344-365.
    13. Christian Volpe Martincus & Jerónimo Carballo, 2012. "Export promotion activities in developing countries: What kind of trade do they promote?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 21(4), pages 539-578, June.
    14. Lechner, Michael & Wunsch, Conny, 2013. "Sensitivity of matching-based program evaluations to the availability of control variables," Labour Economics, Elsevier, vol. 21(C), pages 111-121.
    15. Nikoloski, Zlatko & Ajwad, Mohamed Ihsan, 2013. "Do economic crises lead to health and nutrition behavior responses ? analysis using longitudinal data from Russia," Policy Research Working Paper Series 6538, The World Bank.
    16. Dillon, Andrew, 2011. "The Effect of Irrigation on Poverty Reduction, Asset Accumulation, and Informal Insurance: Evidence from Northern Mali," World Development, Elsevier, vol. 39(12), pages 2165-2175.
    17. Carlos A. Flores & Oscar A. Mitnik, 2009. "Evaluating Nonexperimental Estimators for Multiple Treatments: Evidence from Experimental Data," Working Papers 2010-10, University of Miami, Department of Economics.
    18. Nguyen Viet, Cuong, 2012. "Selection of Control Variables in Propensity Score Matching: Evidence from a Simulation Study," MPRA Paper 36377, University Library of Munich, Germany.
    19. Cisilino, Federica & Bodini, Antonella & Zanoli, Agostina, 2019. "Rural development programs’ impact on environment: An ex-post evaluation of organic faming," Land Use Policy, Elsevier, vol. 85(C), pages 454-462.
    20. Deschamps-Laporte, Jean-Philippe, 2013. "The impact of extension services on farming households in Western Kenya: A propensity score approach," Working Papers 2013:5, Örebro University, School of Business, revised 10 Jun 2013.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:38:y:2010:i:7:p:989-1000. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.