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The Effects of a Multifaceted Poverty Alleviation Program on Rural Income and Household Behavior in China

Author

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  • Rui Li
  • Hong Song
  • Jun Zhang
  • Junsen Zhang

Abstract

This study examines the effects of a government-led, large-scale, multifaceted poverty alleviation program on rural income in China. We find that the program has a positive impact on national key poor counties, with a 10.9 percent increase in rural income. This effect mainly arises via industrial support, agricultural development, and public service improvement. Poverty alleviation strategies consistent with local comparative advantages yield more significant effects. Household-level analyses suggest the program changes households' income and expenditure, and the effects are particularly substantial for the poorest households. The study provides novel insights and policy implications for China's recent experience with poverty alleviation.

Suggested Citation

  • Rui Li & Hong Song & Jun Zhang & Junsen Zhang, 2025. "The Effects of a Multifaceted Poverty Alleviation Program on Rural Income and Household Behavior in China," American Economic Journal: Economic Policy, American Economic Association, vol. 17(2), pages 319-357, May.
    • Handle: RePEc:aea:aejpol:v:17:y:2025:i:2:p:319-57
    DOI: 10.1257/pol.20210485
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    More about this item

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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