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Social assistance and non-agriculture employment in rural China: evidence from the Rural Minimum Living Security (Rural Dibao)

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  • Dian Chen

    (Guizhou University)

  • Xiangming Fang

    (China Agricultural University
    Georgia State University)

Abstract

The Rural Minimum Living Security (Rural Dibao) is a crucial social assistance program designed to alleviate poverty in rural China. While non-agriculture employment plays a significant role in boosting farmers’ income and reducing long-term poverty, little is known about the impact of Rural Dibao on non-agriculture employment. This study uses data from the China Household Finance Survey (CHFS) and employs Propensity Score Matching with Difference-in-Differences (PSM-DID) methods to assess the effects of Rural Dibao on non-agriculture employment and to investigate the underlying mechanisms. Our findings reveal that Rural Dibao significantly increases the likelihood of recipients’ participation in non-agriculture employment and extends their labor supply in such jobs. The program primarily boosts temporary work rather than formal employment or self-employment. The increase in temporary employment primarily originated from transitions from agriculture work, rather than from previously unemployed individuals. Mechanism analysis suggests that government-provided employment information and recommendations serve as key drivers for increasing temporary employment, while cash transfers and job-seeking cash subsidies alone do not effectively promote non-agricultural employment.

Suggested Citation

  • Dian Chen & Xiangming Fang, 2025. "Social assistance and non-agriculture employment in rural China: evidence from the Rural Minimum Living Security (Rural Dibao)," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-11, December.
    • Handle: RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-04443-5
    DOI: 10.1057/s41599-025-04443-5
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