Unveiling the Social Fabric: The Impact of China’s Rural Subsistence Allowance System on Community Isolation

Abstract

This study investigates welfare stigma and its underlying mechanisms using data from the China Family Panel Studies Project. By employing propensity score matching, the research examines how indicators such as neighborhood relationships and interactions with relatives reflect social isolation within rural households. The analysis reveals critical determinants affecting rural families’ access to subsistence allowance assistance and explores the resultant social isolation effects within China’s rural subsistence allowance system. Our findings indicate that several factors—including family income, housing conditions, employment status, age demographics, health status, and village characteristics (such as landform and population density)—significantly impact the likelihood of receiving subsistence allowances. Additionally, the study highlights that the rural subsistence allowance system contributes to diminished neighborhood cohesion and fewer interactions with relatives among beneficiaries. The research further identifies a pronounced targeting bias within the district targeting mechanism of the allowance program, which is corroborated through robustness testing. Overall, this study provides novel insights into the relationship between welfare stigma and social isolation, offering valuable empirical evidence and policy recommendations to enhance the effectiveness of rural subsistence allowance policies in China.