Economic Transition and Subjective Poverty in Urban China

Abstract

Market-oriented economic reforms have substantially changed the Chinese economy. A policy of "allowing some to get rich earlier" clearly has benefited some regions of the country more than others. The purpose of this paper is to investigate changes in regional urban poverty during this period of policy transition. Our approach is based on survey responses to minimum needs (i.e., the "subjective method"). For the richest (Coast) and poorest regions (North West) we find unambiguous declines in poverty between 1988 and 1995 for the registered population. For the Central and South West regions we find that changes in poverty over time are sensitive to both the poverty line selected and the poverty index employed.