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Is rural pension insurance the effective way to reduce rural relative poverty

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  • Zhou, Yan
  • Li, Yang

Abstract

Drawing on data from the China Health and Retirement Longitudinal Study (CHARLS), this study develops a multidimensional relative poverty indicator and uses the difference-in-differences approach to empirically analyze the impact of rural pension insurance services on the relative poverty of the rural older adult population. The results revels that rural pension insurance services significantly reduce multidimensional relative poverty among rural older adults, a conclusion that remains robust across multiple tests. The poverty alleviation effect of rural pension insurance demonstrates both group and regional variations: it is most pronounced for individuals aged 60–80, those with spouses, and residents of central and eastern regions. These services primarily contribute to poverty reduction by increasing consumption among older adults and enhancing their confidence in the future. Based on these insights, this study recommends expanding the coverage of rural pension insurance services, increasing benefit levels, and leveraging the redistributive effects of such programs to advance the common prosperity of rural populations.

Suggested Citation

  • Zhou, Yan & Li, Yang, 2025. "Is rural pension insurance the effective way to reduce rural relative poverty," International Review of Economics & Finance, Elsevier, vol. 104(C).
    • Handle: RePEc:eee:reveco:v:104:y:2025:i:c:s1059056025007646
    DOI: 10.1016/j.iref.2025.104601
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