Inequality in social assistance provision and receipt

Xuan Huo and Qin Gao

Chapter 17 in Handbook on Inequality in China, 2025, pp 409-429 from Edward Elgar Publishing

Abstract: This chapter provides a systematic review of the inequality in social assistance provision and receipt in China. Using a benefit-allocation framework, we focus on the unequal social assistance benefit distribution as well as its potential influencing factors in terms of both policy design and implementation. We also analyze the negative outcomes incurred by such inequality. We find that the gaps in social assistance benefit levels across the urban-rural divide and different localities are gradually narrowing, and the welfare cliff effect between dibao recipients and the marginalized dibao is declining. However, the targeting error of dibao is still serious, with rural areas being more severe than urban areas. The inequality directly leads to the insufficient role of social assistance in poverty reduction. It also negatively impacted poor households’ long-term development and social stability. We discuss implications of these findings, drawing from the undergoing changes in China's social assistance system.

Keywords: China; Social assistance; Inequality; Policy design; Policy implementation (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035317790
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