Does China's public assistance scheme create welfare dependency? An assessment of the welfare of the Urban Minimum Living Standard Guarantee

In China, there are increasing concerns among the public and academics on welfare dependency caused the 'generous' of benefits of the Urban Minimum Living Standard Scheme (UMLSS). This study examines this issue by analysing the levels of the UMLSS according to international poverty measurements as well as reporting the life experiences of MLSS beneficiaries in Guangzhou city. It concludes that the UMLSS assistance is actually too low to reduce claimants’ work motivation. Instead, supplementary benefits associated with the UMLSS contributing to the recipients’ staying in China’s public assistance scheme in order to gain access to basic housing, health and educational services

The Impacts of Unemployment on Alternative Poverty Rates

The analysis uses March Current Population Survey data to estimate state-level cross-section/time-series models of the effects of the unemployment rate on alternative poverty rates. The measures include the official headcount rate, and alternatives based higher thresholds, revised equivalence scales and income defined as inclusive and exclusive of taxes and cash and in-kind transfers. The estimated effects turn critically on the measurement approaches, both for the total sample population and for four population sub-groups. For several alternative poverty rate measures, the unemployment rate has no significant impact on poverty. By contrast, real per-capita median earnings have strong and consistently negative effects on the poverty rates of all groups studied. The findings thus provide important lessons for researchers exploring the links between economic conditions and poverty, and for policy makers developing poverty reduction strategies. Copyright 2004 Blackwell Publishing Ltd.