Pro-rural policies, income and inequality: Evaluating a cash-for-work program in rural China

Yu Chen and Sylvie Démurger
Additional contact information
Yu Chen: University of Macau, Av. Padre Tomás Pereira, Macao SAR, China

No 1415, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon

Abstract: Despite the dramatic reduction of poverty in China over the past thirty-five 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 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.

Keywords: cash-for-work program; income source diversification; agricultural households; income inequality; China (search for similar items in EconPapers)
JEL-codes: D31 O13 O15 O53 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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ftp://ftp.gate.cnrs.fr/RePEc/2014/1415.pdf (application/pdf)

Related works:
Journal Article: Pro-rural Policies, Income, and Inequality: Evaluating a Cash-for-Work Program in Rural China* (2014)
Working Paper: Pro-rural policies, income and inequality: Evaluating a cash-for-work program in rural China (2014)
Working Paper: Pro-rural policies, income and inequality: Evaluating a cash-for-work program in rural China (2014)
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