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Is the Minimum Living Standard a Welfare Cliff for the Near Poverty Population? An Empirical Study based on Poverty Vulnerability

ZHANG Dong   

  1. (School of Public Administration and Policy,Renmin University of China,Beijing 100872,China)
  • Received:2019-09-16 Online:2020-04-10

Abstract: The near poverty population who fail to get the minimum living security assistance but are more vulnerable to poverty are more likely to fall into poverty in the future, and there may be a cliff effect of lack of relief welfare compared with the minimum living security families.This paper uses China′s household tracking survey data in 2014, based on the perspective of poverty vulnerability, to measure the poverty level of the near poor population, uses the method of propensity score matching to explore whether the low-income insurance system has a cliff effect on the poverty vulnerability of the near poor population and the low-income families,and analyzes whether the lack of relief welfare caused by cliff effect causes the inequality of participation right and welfare bonus of the poor people.The results show that when the per capita income of the poor families is higher than the minimum security line and the difference between the minimum wage line and the minimum security line is 0.2-0.25 times, there is a significant cliff effect and lack of relief welfare, and there is inequality in the right to participate and the welfare bonus.Therefore, poverty vulnerability should be included in the current discrimination mechanism of subsistence allowances, so as to improve the measurement and identification of the possibility of poverty in the future; at the same time, the near poverty population who lack relief welfare should be included in the subsistence allowances system, so as to resolve the inequality caused by cliff effect.

Key words: near poverty population, minimum living security system, poverty vulnerability, cliff effect