Impact of poverty alleviation through relocation: From the perspectives of income and multidimensional poverty

Abstract

Poverty alleviation through relocation (PAR) is a milestone project in winning the battle against extreme poverty and aims to relocate poor people from inhospitable areas and lift them out of poverty. The effect of PAR on poor households merits evaluation as it is also the basis for understanding the achievements of targeted poverty alleviation and preventing a large-scale return to poverty. This study analyzed the effect of PAR on poor households from the perspectives of income and multidimensional poverty, based on panel data of 1009 poor households from eight provinces in China. The results showed that the incidence of multidimensional poverty in poor households exceeded that of income poverty, and its decline was faster than that of income poverty. However, the overlap between multidimensional poverty and income poverty was low, at 26.3%, 4.9%, and 0% in 2016, 2018, and 2020, respectively. PAR showed a significantly negative effect on poor households’ income and multidimensional poverty, and the longer the relocation time, the more significant the effect. PAR reduced the income poverty of poor households mainly by increasing their wage income and property income, and multidimensional poverty mainly by improving their living standards. The impact of PAR on income and multidimensional poverty is regional heterogeneous. Post-relocation measures should improve the income and capability of poor households through industrial development, employment assistance, infrastructure upgrades, and public service improvements. In addition, the income and multidimensional poverty standards should be jointly adopted in the governance of relative poverty.