The Impact of Program Participation on Rural Household Income: Evidence from China’s Whole Village Poverty Alleviation Program

Abstract

Villagers’ participation in poverty alleviation programs has received considerable attention, especially with regard to the poor. However, not much is known about the welfare effect of villagers’ program participation. This paper analyzes the impact of villagers’ program participation on their incomes. We used household data from 529 villagers in China’s Whole Village Poverty Alleviation Program. We focused on two types of program participation—discussion and voting. Using the propensity score matching approach, we estimate the impact of rural households’ program participation on their income. The results show that the education and the political career of the household head determine program participation. Households participating in discussion and voting have a positive and significant effect on household income. Richer households benefit more from the program. However, the poor receive less benefits. We conclude that broadening villager’s participation can boost the effectiveness of China’s poverty alleviation program.