Anti-Poverty Effectiveness
Chapter 5 investigates Dibao’s anti-poverty effectiveness. The chapter shows that, based on various poverty lines and across urban and rural areas, Dibao’s anti-poverty effectiveness is limited and at best modest, largely due to its targeting errors and gaps in benefit delivery. Dibao is more effective in reducing the depth and severity of poverty than it is the rate of poverty, and its anti-poverty effectiveness is greater among recipients than in the general population. Dibao’s influence on reducing poverty is larger when a lower poverty line is used and smaller when a higher poverty line is used. Because relative poverty lines are often set relative to the median income in society and tend to be much higher than the more widely used absolute poverty lines, Dibao’s effects on reducing relative poverty are particularly limited. Dibao has had minimal effect on narrowing the income inequality gap in society.