Summary (English)

This paper reviews the development of social transfer schemes in China since 2000 and investigates the impacts of these transfer schemes on poverty, income distribution, and consumption. An analysis of the 2003 and 2007 rural household data in six provinces and a municipality shows that these programs significantly reduce poverty. Analysis based on data from China Statistical Yearbook shows an insignificant effect of social transfer schemes on mitigating income distribution in rural areas, as against a growingly visible effect in urban areas. The analysis also shows an obvious positive correlation between the income derived from transfer schemes in both urban and rural areas and households’ consumption of education, health care, and housing. In urban areas, transfer income and expenditures on human capital related items even show a higher correlation coefficient than non-transfer income. In rural areas, the positive correlation between transfer income and total consumption and human capital related consumption becomes stronger over time.

Powerpoint presentation in Chinese: 中国的社会转移支付项目及其宏观经济效应