Emerging Urban Poverty and Effects of the Dibao Program on Alleviating Poverty in China

Meiyan Wang

China & World Economy, 2007, vol. 15, issue 2, 74-88

Abstract: The present paper describes the current urban poverty situation, examines the factors affecting the probability of a household being in poverty and investigates how the urban minimum living standard guarantee (dibao) program helps poor people to get out of poverty. The targeting efficiency of the urban dibao program is discussed. The present study finds that the poverty rate of households with unemployed workers is much higher than that of households without unemployed workers. The urban dibao program is helpful in reducing poverty rates, but it does not reduce poverty rates too much. The government should place emphasis on helping laid‐off and unemployed workers to become reemployed. The most urgent problem for the dibao program is improving the efficiency of targeting.

Date: 2007
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