The Limits of the Chinese Welfare State: Evidence from the Dibao Program in Chengdu

Abstract

ABSTRACTThe Minimum Living Standard Guarantee Scheme (Dibao) is the most important social assistance program in China. It provides means-tested cash transfers for the poor and serves as a safety net in the Chinese welfare state. Like minimum-income schemes in Western societies, however, it is also a deterrent to efforts by welfare recipients to find work. In order to solve this issue, China officially established an employment assistance program in 2014, aimed at “activating” welfare recipients. Evaluative evidence on the effectiveness of employment-assistance programs, however, remains scarce. This article uses in-depth interviews to analyse the activation paradigm and evaluate the effectiveness of employment assistance in China. The results indicate that employment assistance is of limited importance in helping recipients move off welfare and become self-sufficient. To promote welfare-to-work transitions, the article argues, positive and negative measures of employment assistance should be emphasised and improved, and it is necessary to understand the unique employment barriers faced by many welfare recipients and provide individually tailored services.