Rural People's Perception of Poverty in China

35 Pages Posted: 7 Jan 2007

See all articles by Björn Gustafsson

Björn Gustafsson

University of Gothenburg - Department of Social Work; IZA Institute of Labor Economics

Ximing Yue

School of Finance, Renmin University of China

Date Written: December 2006

Abstract

Subjective Poverty Line methodology is applied to rural China 2002 using a sample from 22 provinces. Respondents were asked two questions: one on amount of food necessary and another on amount of cash necessary for their households. The respondent's perception of how much cash is needed varies profoundly and positively by income in the county where the respondent lives. The findings provide an argument for increasing the official poverty line for China as average household income increases. Poverty in rural China is disproportionally concentrated to the western regions and to poor counties. Most of rural China's poverty can be attributed to households living outside classified poor areas. People living in a household with many members, those with a household head with a short education, and children face higher poverty risks than other persons.

Keywords: China, poverty, poverty line

JEL Classification: I32, O15, P36

Suggested Citation

Gustafsson, Bjorn and Yue, Ximing, Rural People's Perception of Poverty in China (December 2006). IZA Discussion Paper No. 2486, Available at SSRN: https://ssrn.com/abstract=955278

Bjorn Gustafsson (Contact Author)

University of Gothenburg - Department of Social Work ( email )

Göteborg
Sweden
+46 31-773-1890 (Phone)
+45 31-773-1888 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Ximing Yue

School of Finance, Renmin University of China ( email )

Room B906
Xianjin Building
Beijing, Beijing
China

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