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Rural People’s Perception of Poverty in China

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  • Gustafsson, Björn Anders

    ()
    (University of Gothenburg)

  • Yue, Ximing

    ()
    (Renmin University of China)

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    Abstract

    Subjective Poverty Line methodology is applied to rural China 2002 using a sample from 22 provinces. Respondents were asked two questions: one on amount of food necessary and another on amount of cash necessary for their households. The respondent’s perception of how much cash is needed varies profoundly and positively by income in the county where the respondent lives. The findings provide an argument for increasing the official poverty line for China as average household income increases. Poverty in rural China is disproportionally concentrated to the western regions and to poor counties. Most of rural China’s poverty can be attributed to households living outside classified poor areas. People living in a household with many members, those with a household head with a short education, and children face higher poverty risks than other persons.

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    Bibliographic Info

    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2486.

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    Length: 35 pages
    Date of creation: Dec 2006
    Date of revision:
    Handle: RePEc:iza:izadps:dp2486

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    Keywords: poverty; poverty line; China;

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    References

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    1. Loren Brandt & Carsten Holz, 2005. "Spatial Price Differences in China: Estimates and Implications," Microeconomics, EconWPA 0512001, EconWPA.
    2. Goedhart, T. & Halberstadt, V. & Praag, B.M.S. van & Kapteyn, A.J., 1977. "The poverty line: Concept and measurement," Open Access publications from Tilburg University urn:nbn:nl:ui:12-361898, Tilburg University.
    3. Ravallion, Martin & Datt, Gaurav & van de Walle, Dominique, 1991. "Quantifying Absolute Poverty in the Developing World," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 37(4), pages 345-61, December.
    4. Kapteyn, A.J. & Kooreman, P. & Willemse, R., 1987. "Some methodological issues in the implementation of subjective poverty definitions," Research Memorandum, Tilburg University, Faculty of Economics and Business Administration 245, Tilburg University, Faculty of Economics and Business Administration.
    5. Colasanto , D. & Gaag, J. van der & Kapteyn, A.J., 1984. "Two subjective definitions of poverty: Results from the Wisconsin basic needs study," Open Access publications from Tilburg University urn:nbn:nl:ui:12-364721, Tilburg University.
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    11. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, Econometric Society, vol. 52(3), pages 761-66, May.
    12. Park, Albert & Wang, Sangui & Wu, Guobao, 2002. "Regional poverty targeting in China," Journal of Public Economics, Elsevier, Elsevier, vol. 86(1), pages 123-153, October.
    13. Riskin, Carl, 1994. "Chinese Rural Poverty: Marginalized or Dispersed?," American Economic Review, American Economic Association, American Economic Association, vol. 84(2), pages 281-84, May.
    14. Gustafsson, Bjorn & Li, Shi, 2004. "Expenditures on education and health care and poverty in rural China," China Economic Review, Elsevier, Elsevier, vol. 15(3), pages 292-301.
    15. Garner, Thesia I & de Vos, Klaas, 1995. "Income Sufficiency v. Poverty: Results from the United States and the Netherlands," Journal of Population Economics, Springer, Springer, vol. 8(2), pages 117-34, May.
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