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Wiley InterScience | ||
  Review of Income and WealthVolume 53 Issue 1, Pages 167 - 189 Special Issue: Special Issue: Inequality and Poverty in China Published Online: 28 Feb 2007 Journal compilation © 2009 International Association for Research in Income and Wealth Published on behalf of the International Association for Research in Income and Wealth
Abstract | References | Full Text: HTML, PDF (Size: 341K) | Related Articles | Citation Tracking  URBAN POVERTY IN CHINA AND ITS CONTRIBUTING FACTORS, 1986–2000 Note: We would like to thank Terry Sicular, other participants at the WIDER 2005 Helsinki conference on "China Income and Poverty", two anonymous referees and the editor for very useful and constructive comments and suggestions. Financial support from the Australian Research Council is acknowledged. Copyright © 2007 The Authors; Journal compilation © International Association for Research in Income and Wealth 2007 ABSTRACTFood price increases and the introduction of radical social welfare and enterprise reforms during the 1990s generated significant changes in the lives of urban households in China. During this period urban poverty increased considerably. This paper uses household level data from 1986 to 2000 to examine what determines whether households fall below the poverty line over this period and investigates how the impact of these determinants has changed through time. We find that large households and households with more nonworking members are more likely to be poor, suggesting that perhaps the change from the old implicit price subsidies, based on household size, to an explicit income subsidy, based on employment, has worsened the position of large families. Further investigation into regional poverty variation indicates that over the 1986–93 period food price increases were also a major contributing factor. Between 1994 and 2000 the worsening of the economic situation of state sector employees contributed to the poverty increase. |
