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Pro-rural Policies, Income, and Inequality: Evaluating a Cash-for-Work Program in Rural China

Author

Listed:
  • Yu Chen

    (University of Macau)

  • Sylvie Démurger

    (University of Lyon)

Abstract

Despite the dramatic reduction of poverty in China over the past 35 years, poverty has not been fully eradicated in rural areas and, in the context of growing inequalities, it remains a national concern. This paper examines a local cash-for-work program launched in mountainous areas of the Beijing municipality in December 2004, with a view to understanding both the challenges and achievements of pro-poor programs in China. Using original household survey data, we first highlight the fairly good targeting performance of the program towards the local poor. Second, participation equations provide evidence of increasing local income without crowding out local agricultural activities. Finally, a decomposition of household income inequality by source highlights the strongly equalizing effect of the program on peasants' income. © 2014 The Earth Institute at Columbia University and the Massachusetts Institute of Technology

Suggested Citation

  • Yu Chen & Sylvie Démurger, 2014. "Pro-rural Policies, Income, and Inequality: Evaluating a Cash-for-Work Program in Rural China," Asian Economic Papers, MIT Press, vol. 13(3), pages 87-114, Fall.
    • Handle: RePEc:tpr:asiaec:v:13:y:2014:i:3:p:87-114
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    Cited by:

    1. Yuekai Cheng & Hongyi Li & Qi Sun & Yu Wang, 2019. "A Model of Household Savings and Alternative Investments in Rural China," Asian Economic Papers, MIT Press, vol. 18(2), pages 145-162, Summer.

    More about this item

    Keywords

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    JEL classification:

    • 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
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General

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