For a long time, related literature on researching the relationship between subsistence security system and poverty focuses on the current effects while ignoring its long-term effects. With the aid of CFPS2012 micro survey data, this paper empirically investigates the impact of the urban and rural subsistence security system on the household vulnerability to poverty. The Method of Propensity Score Matching
(PSM) has been adopted in this paper to eliminate the sample selection bias as far as possible. Basic results show that subsistence security system has not significantly improved the vulnerability to poverty of the family, and may increase the possibility of falling into poverty in the future, which conclusion is valid for both urban and rural households.
Keywords: subsistence security system, vulnerability to poverty, private transfer payment, willingness to work
China Finance and Economic Review
Volume 7 Number 2 Summer 2018.P86