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Rural People’s Perception of Poverty in China

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Author Info
Bjorn Gustafsson () (University of Göteborg and IZA Bonn)
Ximing Yue () (Renmin University of China)
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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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
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Handle: RePEc:iza:izadps:dp2486

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Related research
Keywords: China poverty poverty line

Find related papers by JEL classification:
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health, Education, Welfare, and Poverty

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References listed on IDEAS
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  1. Park, Albert & Wang, Sangui & Wu, Guobao, 2002. "Regional poverty targeting in China," Journal of Public Economics, Elsevier, vol. 86(1), pages 123-153, October. [Downloadable!] (restricted)
  2. Brandt, Loren & Holz, Carsten A, 2006. "Spatial Price Differences in China: Estimates and Implications," Economic Development and Cultural Change, University of Chicago Press, vol. 55(1), pages 43-86, October.
    Other versions:
  3. GUSTAFSSON, Bjorn & LI, Shi, 2004. "Expenditures on education and health care and poverty in rural China," China Economic Review, Elsevier, vol. 15(3), pages 292-301. [Downloadable!] (restricted)
  4. Ravallion, Martin & Datt, Gaurav & van de Walle, Dominique, 1991. "Quantifying Absolute Poverty in the Developing World," Review of Income and Wealth, Blackwell Publishing, vol. 37(4), pages 345-61, December.
  5. FANG, Cheng & ZHANG, Xiaobo & FAN, Shenggen, 2002. "Emergence of urban poverty and inequality in China: evidence from household survey," China Economic Review, Elsevier, vol. 13(4), pages 430-443, December. [Downloadable!] (restricted)
  6. Thesia I. Garner & Kathleen Short, 2005. "Personal Assessments of Minimum Income and Expenses: What Do They Tell Us about 'Minimum Living' Thresholds and Equivalence Scales?," Working Papers 379, U.S. Bureau of Labor Statistics. [Downloadable!]
  7. Riskin, Carl, 1994. "Chinese Rural Poverty: Marginalized or Dispersed?," American Economic Review, American Economic Association, vol. 84(2), pages 281-84, May. [Downloadable!] (restricted)
  8. Garner, Thesia I & de Vos, Klaas, 1995. "Income Sufficiency v. Poverty: Results from the United States and the Netherlands," Journal of Population Economics, Springer, vol. 8(2), pages 117-34, May.
  9. Ravallion, Martin & Shaohua Chen, 2004. "China's (uneven) progress against poverty," Policy Research Working Paper Series 3408, The World Bank. [Downloadable!]
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  10. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
  11. John Knight & Li Shi, 2006. "Three Poverties in Urban China," Review of Development Economics, Blackwell Publishing, vol. 10(3), pages 367-387, 08. [Downloadable!] (restricted)
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