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Does Targeted poverty alleviation foster household endogenous motivation? Evidence from China

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  • Kong, Yue
  • Liu, Chen
  • Xing, Huaizhen
  • Su, Qun

Abstract

This study examines whether China’s Targeted Poverty Alleviation (TPA) policy strengthens the endogenous motivation of poverty-stricken households—an important but underexplored behavioral channel in the poverty literature. Using household-level panel data and a Difference-in-Differences (DID) strategy based on the rollout of the TPA policy, we construct measures of household motivation along three dimensions: investment in education and training, expectations about the future, and consumption patterns. The results show that the policy significantly increases households’ motivation to invest in human capital and improves their economic prospects. Mechanism analysis suggests that these effects operate through enhanced human capital accumulation and changes in labor supply behavior, which together reinforce future-oriented expectations and shift consumption toward more productive uses. Overall, the findings indicate that well-targeted policies can influence not only short-term welfare but also the behavioral foundations of sustained economic participation.

Suggested Citation

  • Kong, Yue & Liu, Chen & Xing, Huaizhen & Su, Qun, 2026. "Does Targeted poverty alleviation foster household endogenous motivation? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 92(C), pages 368-385.
    • Handle: RePEc:eee:ecanpo:v:92:y:2026:i:c:p:368-385
    DOI: 10.1016/j.eap.2026.05.021
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