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Urban Poverty In China And Its Contributing Factors, 1986-2000

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  • Xin Meng
  • Robert Gregory
  • Guanhua Wan

Abstract

Food price increases and the introduction of radical social welfare and enterprise reforms during the 1990s generated significant changes in the lives of urban households in China. During this period urban poverty increased considerably. This paper uses household level data from 1986 to 2000 to examine what determines whether households fall below the poverty line over this period and investigates how the impact of these determinants has changed through time. We find that large households and households with more nonworking members are more likely to be poor, suggesting that perhaps the change from the old implicit price subsidies, based on household size, to an explicit income subsidy, based on employment, has worsened the position of large families. Further investigation into regional poverty variation indicates that over the 1986-93 period food price increases were also a major contributing factor. Between 1994 and 2000 the worsening of the economic situation of state sector employees contributed to the poverty increase. Copyright © 2007 The Authors; Journal compilation © International Association for Research in Income and Wealth 2007.

Suggested Citation

  • Xin Meng & Robert Gregory & Guanhua Wan, 2007. "Urban Poverty In China And Its Contributing Factors, 1986-2000," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(1), pages 167-189, March.
  • Handle: RePEc:bla:revinw:v:53:y:2007:i:1:p:167-189
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    Cited by:

    1. Wu, Alfred M. & Ramesh, M., 2014. "Poverty Reduction in Urban China: The Impact of Cash Transfers," MPRA Paper 54358, University Library of Munich, Germany.
    2. Farhad Noorbakhsh & Zhikai Wang, 2010. "Interprovincial disparities in China since the reforms: convergence or divergence?," Working Papers 2010_11, Business School - Economics, University of Glasgow.
    3. Baeten, Steef & Van Ourti, Tom & van Doorslaer, Eddy, 2013. "Rising inequalities in income and health in China: Who is left behind?," Journal of Health Economics, Elsevier, vol. 32(6), pages 1214-1229.
    4. Chi, Wei & Li, Bo & Yu, Qiumei, 2007. "Decomposition of Changes in Earnings Inequality in China: A Distributional Approach," MPRA Paper 3806, University Library of Munich, Germany.
    5. Xin Meng & Chris Manning & Li Shi & Tadjuddin Nur Effendi (ed.), 2010. "The Great Migration," Books, Edward Elgar Publishing, number 13619.
    6. Enrico Fabrizi & Maria Rosaria Ferrante & Silvia Pacei, 2014. "A Micro-Econometric Analysis of the Antipoverty Effect of Social Cash Transfers in Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(2), pages 323-348, June.
    7. Noorbakhsh, Farhad & Wang, Zhikai, 2010. "Interprovincial disparities in China since the reforms: Convergence or divergence?," SIRE Discussion Papers 2010-77, Scottish Institute for Research in Economics (SIRE).
    8. Russell Smyth & Ingrid Nielsen & Qingguo Zhai, 2010. "Personal Well-being in Urban China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 95(2), pages 231-251, January.
    9. Sumie Sato & Mototsugu Fukushige, 2010. "The Chinese Economy and Income Inequality among East Asian Countries," Discussion Papers in Economics and Business 10-06, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    10. Luo, Xubei & Zhu, Nong, 2008. "Rising income inequality in China : a race to the top," Policy Research Working Paper Series 4700, The World Bank.
    11. Xiao Luo & Chor-Ching Goh & Nong Zhu, 2014. "Income Growth, Inequality and Poverty Reduction: A Case Study of Eight Provinces in China," CIRANO Working Papers 2014s-03, CIRANO.

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