Vulnerability to poverty in China: a subjective poverty line approach

Abstract

Wide arrays of econometric techniques have been proposed to assess vulnerability to poverty. All such measures attempt to determine the probability to fall (or remain) into poverty given households’ characteristics. We have used cross-section data from the Chinese Household Income Project Series and subjective poverty lines to shed light on the sources of uncertainty in China. The lack of a comprehensive pension system and distance from the markets raise vulnerability in rural areas, whereas the hukou registration system has generated a growing mass of exploited and unprotected migrants in urban areas.