Can Land Transfer Alleviate the Poverty of the Elderly? Evidence from Rural China

This study explores the impact of farmland transfer on the multidimensional relative poverty of the elderly in rural areas to provide a reference for the study of rural land transfer in China and improve the welfare system for the elderly. Based on the China Family Panel Studies (CFPS) rural sample data in 2018, this paper uses the AF multidimensional index measurement method to assess multidimensional relative poverty in rural areas. Logit regression estimation examines the single index poverty of rural older adults transferred from rural land and the impact of multidimensional relative poverty, using the propensity score matching method (PSM) to analyze the results’ robustness. The transfer of agricultural land has different impacts on the poverty of different rural elderly poverty indicators and negatively affects the comprehensive effect of rural elderly poverty. The transfer of agricultural land significantly alleviates rural elderly poverty. Reasonable and effective transfer of agricultural land, together with improved rural social security and a caring service system for the elderly, will promote the continuous operation of large-scale agricultural operations and alleviate rural elderly poverty.

Elderly Poverty in Vietnam: Trends and Determinants

Adopting data from the 2010 and 2016 Vietnam Household Living Standard Surveys, this paper identifies factors of elderly poverty incidences and depth in Vietnam. Our analysis shows that overall, elderly poverty is lower than the overall poverty headcount in Vietnam. Yet, some elderly groups are more vulnerable to poverty than others. In particular, the elderly living in rural areas are more susceptible to poverty than those living in urban areas. The ethnic minority elderly are likewise more vulnerable to poverty than those who belong to the Kinh-Hoa ethnic majority. We found several determining factors for elderly poverty in urban and rural areas, including region, ethnicity, education, and household age composition. Remittances and social assistance are also crucial in reducing elderly poverty in rural areas. With these findings, this study proposes several policy implications, including improving the social assistance support for the elderly, reducing regional and ethnic disparities, and supporting the employment of older people.

Poverty Is Preventable

Chapter 9 addresses the myth that poverty is inevitable. This idea goes back to Biblical times and is often expressed by conservatives. In contrast, this chapter argues that poverty is preventable. Three examples are given in which poverty has been substantially reduced: (1) the War on Poverty during the 1960s and early 1970s; (2) the elderly poverty rate from 1959 to 2019; and (3) single-parent families in Denmark. In each case, poverty has been reduced through social policies. The chapter concludes that the problem is not a lack of solutions. There is considerable evidence demonstrating what strategies are effective in reducing poverty. The problem lies in a lack of political will to implement these strategies. Politicians have used the myth of poverty’s inevitability to reinforce their agenda of a smaller federal government footprint.

Poverty of the Elderly in Korea

Korea’s elderly poverty rate remains very high. The fact that a society long governed by the Confucian idea of respect for the elderly has a high elderly poverty rate is ironic. This paper reveals the causes of the exceptionally high poverty rate of the elderly in Korea. Significant reductions in the birth rate and the rapid aging of the population have fueled reductions in private transfers from adult children to elderly parents. Efforts to strengthen the public transfer system have not kept pace with reductions in private transfers in relieving elderly poverty. Korea’s experience provides policy implications to developing countries.

Minimum Wages and the Distribution of Family Incomes

There is robust evidence that higher minimum wages increase family incomes at the bottom of the distribution. The long-run (3 or more years) minimum wage elasticity of the non-elderly poverty rate with respect to the minimum wage ranges between −0.220 and −0.459 across alternative specifications. The long-run minimum wage elasticities for the tenth and fifteenth unconditional quantiles of family income range between 0.152 and 0.430 depending on specification. A reduction in public assistance partly offsets these income gains, which are on average 66 percent as large when using an expanded income definition including tax credits and noncash transfers. (JEL D31, I32, I38, J31, J38)