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Poverty Reduction in Urban China: The Impact of Cash Transfers

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  • Wu, Alfred M.
  • Ramesh, M.

Abstract

The extent to which social protection programs in general and targeted programs in particular actually alleviate poverty has been a central issue in development debates for decades. The objective of this paper is to contribute to the debate by empirically examining the poverty-alleviation effects of one of the largest targeted programs in the world: the Minimum Living Standard Assistance (MLSA) or Dibao in China. Using newly available data on MLSA spending and a unique panel survey dataset covering the 1993-2009 period, this research investigates the impact of the MLSA on poverty alleviation. The analyses using fixed- and random- effects logit models and hierarchical liner models offer insights that go beyond the existing studies on the subject. Findings from the study confirm that targeted social protection programs are an effective tool for reducing poverty.

Suggested Citation

  • Wu, Alfred M. & Ramesh, M., 2014. "Poverty Reduction in Urban China: The Impact of Cash Transfers," MPRA Paper 54358, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:54358
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    References listed on IDEAS

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    1. repec:spr:soinre:v:132:y:2017:i:1:d:10.1007_s11205-015-1174-4 is not listed on IDEAS
    2. Qin Gao & Shiyou Wu & Fuhua Zhai, 2015. "Welfare Participation and Time Use in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(3), pages 863-887, December.

    More about this item

    Keywords

    Dibao; poverty; public assistance; development policy; China;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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