The Causes of Chronic and Transient Poverty and Their Implications for Poverty Reduction Policy in Rural China

The study focuses on two components of total poverty: chronic and transient poverty, and investigates their relative importance in total observed poverty, as well as the determinants of each components. We found that transient poverty accounts for a large proportion of total poverty observed in the poor rural areas of China. By analyzing the determinants of the two types of poverty, we found that household demographic characteristics, such as age of the head of households, family sizes, labour participation ratio, and educational level of the head of the households, are very important to the poverty status of households. These factors matter more to chronic poverty than transient poverty, and have greater impacts on the poverty measured by consumption than that measured by income. Besides the demographic factors of households, other household factors like physical stocks, the composition of income, and the amount of cultivated lands also have significant effects on both chronic and transient poverty. It is also confirmed that change in cash holding and saving and borrowing grain are used by rural households to cope with income variation and smooth their consumption. Attributes of community where the households reside are also important to poverty. With very few exceptions, we did not find that poverty programs have significant impact on poverty reduction at the households' level. We interpreted this as the poverty programs benefiting the wealthy more than the poor in a given poor area. The main reason for this could be that the implementation design of these programs fails to target the poor.Income risk, chronic poverty, transient poverty, poverty program evaluation, China

The Redistributive Impact of Taxation in Rural China, 1995-2002: an Empirical Study Using the 1995-2002 CASS CHIP Surveys

This paper evaluates the redistributive impacts of rural taxation in China, using the CASS CHIP survey 1995-2002. The main findings can be summarized as follows.First, the major policy target of rural taxation reform--reducing the average rate of taxes and levies--was accomplished between 1995 and 2002, with favorable redistributive results. When the aggregate scene is observed, the disequalizing redistributive impact of taxation declined between 1995 and 2002. Second, despite these positive results from the aggregate perspective, the favorable impact of the reform was severely limited because overall rural taxation remained disequalizing after the reform and regressivity in taxation itself, measured by the Kakwani index and the income elasticity of taxation, increased between 1995 and 2002. The favorable change in the redistributive impact between these years did not occur as a result of a decrease in the degree of regressivity of the tax itself, but because the average rate of taxation and before-tax income inequality declined. Moreover, when the regional picture is observed, the overall redistributive impact of taxation worsened in several provinces following the reform.redistributive effects of taxation, fiscal reform, local governance, intergovernmental relations, rural China

Migrants as second-class workers in urban China? A decomposition analysis

In urban China, urban resident annual earnings are 1.3 times larger than long term rural migrant earnings as observed in a nationally representative sample in 2002. Using microsimulation, we decompose this difference into four sources, with particular attention to path dependence and statistical distribution of the estimated effects: (1) different allocation to sectors that pay different wages (sectoral effect); (2) hourly wage disparities across the two populations within sectors (wage effect); (3) different working times within sectors (hours effect); (4) different population structures (population effect). Although sector allocation is extremely contrasted, with very few migrants in the public sector and very few urban residents working as self-employed, this has no clear impact on differential earnings. Indeed, the sectoral effect is not robust to the path followed for the decomposition. We show that the migrant population has a comparative advantage in the private sector: increasing its participation into the public sector would not necessarily improve its average earnings. The second main finding is that the population effect is robust and significantly more important than wage or hours effects. This implies that the main source of disparity between the two populations is pre-market (education opportunities) rather than on-market.Chinese labor market ; earnings differentials ; migration ; discrimination

Migrants as second-class workers in urban China? A decomposition analysis

In urban China, urban resident annual earnings are 1.3 times larger than long term rural migrant earnings as observed in a nationally representative sample in 2002. Using microsimulation, we decompose this difference into four sources, with particular attention to path dependence and statistical distribution of the estimated effects: (1) different allocation to sectors that pay different wages (sectoral effect); (2) hourly wage disparities across the two populations within sectors (wage effect); (3) different working times within sectors (hours effect); (4) different population structures (population effect). Although sector allocation is extremely contrasted, with very few migrants in the public sector and very few urban residents working as self-employed, the sectoral effect is not robust to the path followed for the decomposition. We show that the migrant population has a comparative advantage in the private sector: increasing its participation into the public sector does not necessarily improve its average earnings. The opposite holds for the urban residents. The second main finding is that population effect is significantly more important than wage or hours effects. This implies that the main source of disparity is pre-market (education opportunities) rather than on-market.chinese labor market ; discrimination ; earnings differentials ; migration

Electric field enhancement of pool boiling of dielectric fluids on pillar-structured surfaces: A lattice Boltzmann study

In this paper, by using a phase-change lattice Boltzmann (LB) model coupled with an electric field model, we numerically investigate the performance and enhancement mechanism of pool boiling of dielectric fluids on pillar-structured surfaces under an electric field. The numerical investigation reveals that applying an electric field causes both positive and negative influences on the pool boiling of dielectric fluids on pillar-structured surfaces. It is found that, under the action of an electric field, the electric force prevents the bubbles nucleated in the channels from crossing the edges of the pillar tops. On the one hand, such an effect results in the bubble coalescence in the channels and blocks the paths of liquid supply for the channels, which leads to the deterioration of pool boiling in the medium-superheat regime. On the other hand, it prevents the coalescence between the bubbles in the channels and those on the pillar tops, which suppresses the formation of a continuous vapor film and therefore delays the occurrence of boiling crisis. Meanwhile, the electric force can promote the departure of the bubbles on the pillar tops. Accordingly, the critical heat flux (CHF) can be improved. Based on the revealed mechanism, wettability-modified regions are applied to the pillar tops for further enhancing the boiling heat transfer. It is shown that the boiling performance on pillar-structured surfaces can be enhanced synergistically with the CHF being increased by imposing an electric field and the maximum heat transfer coefficient being improved by applying mixed wettability to the pillar-structured surfaces.Comment: 29 pages, 16 figure