Vulnerability to Poverty in Chinese Households with Elderly Members: 2013–2018

Abstract

In Chinese households, there is a significant shift away from basing poverty alleviation on the relative poverty line as opposed to the absolute poverty line. Based on VER and the concept of poverty capacities, this study evaluated the impact of development capacities and indicators on the vulnerability to poverty of elderly households. The three most important findings are as follows: (1) This study employed the multidimensional vulnerability methodology to evaluate the effects of potential factors on the Chinese elderly household’s vulnerability. Rather than analysing current poverty, this study focused on the estimation of future poverty, which is prospective. (2) Contrary to the expectations of empirical studies, the application of difference-in-difference and propensity score matching in this study revealed that the government’s institutional pension reform decreases the vulnerability rate further. (3) Both development capacities and indicators are critical determinants of further poverty, and in order to effectively alleviate poverty, policymakers should strengthen capacities and grant rights to vulnerable households.