The poverty alleviation effect of transfer payments: evidence from China

Yan Miao and Zheng Li ()
Additional contact information
Yan Miao: Tianjin Normal University
Zheng Li: Tianjin University of Finance and Economics

Palgrave Communications, 2023, vol. 10, issue 1, 1-9

Abstract: Abstract Transfer payments play a crucial role in combating poverty in countries. However, the effectiveness of transfer payments in alleviating poverty remains controversial due to variations in environmental factors, economic development, and cultural contexts across different nations. In this study, we employ counterfactual causal inference to examine the influence of government transfer payments on poverty. By utilizing data from China, we present new evidence that sheds light on related issues. Our findings reveal that transfer payments have a negative impact on the overall income of rural poor households. This can be attributed to a decrease in labor supply among rural poor residents who receive such payments, resulting in reduced wage income. Additionally, transfer payments lead to decreased expenditure on food and increased spending on healthcare. These changes in total income and consumption patterns indicate that China’s current transfer payment policy has short-term efficacy by meeting the basic living security needs of rural poor residents and improving their health conditions. However, the lack of significant changes in education spending suggests that transfer payments have little long-term effect.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1057/s41599-023-02446-8 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palcom:v:10:y:2023:i:1:d:10.1057_s41599-023-02446-8

Ordering information: This journal article can be ordered from
https://www.nature.com/palcomms/about

DOI: 10.1057/s41599-023-02446-8

Access Statistics for this article

More articles in Palgrave Communications from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().