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  5. The Effects of a Multifaceted Poverty-Alleviation Program On Rural Income and Household Behavior in China

American Economic Journal:
Economic Policy

ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)

The Effects of a Multifaceted Poverty-Alleviation Program On Rural Income and Household Behavior in China

  • Rui Li
  • Hong Song
  • Jun Zhang
  • Junsen Zhang
American Economic Journal: Economic Policy (Forthcoming)

Abstract

This study examines the effects of a government-led, large-scale, multifaceted poverty-alleviation program on rural income in China. We find that the program has a positive impact on national key poor counties, with a 10.9% increase in rural income. This effect mainly arises via three channels: industrial support, agricultural development, and public service improvement. A further analysis suggests that poverty alleviation strategies that are consistent with local comparative advantages yield a more significant effect. Household-level analyses suggest that the program changes households’ income and expenditure, and the effect is particularly substantial for the poorest households.

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