Measuring the Targeting Accuracy of China’s Urban Dibao System

Song Jin (宋锦)*1, Li Shi (李实)2 and Wang Dewen (王德文)3

1 Institute of World Economics and Politics, the Chinese Academy of Social Sciences (IWEP-CASS), Beijing, China

2 School of Public Affairs and Academy of Social Governance, Zhejiang University, Hangzhou, China

3 Social Protection and Labor Global Practice (SPLGP), the World Bank

Abstract: After China eradicated absolute poverty in 2020, the problems of relativepoverty and urban poverty will draw more attention. Social protection system in urbanareas lays the groundwork for economic transition and social stability. The targetingaccuracy of urban minimum livelihood guarantee (Dibao) system is the key to the successof the system. After analyzing urban Dibao’s targeting practice and performance withhousehold survey data, this study found that the issuance of Dibao payments took accountof household income, assets and demographic characteristics to ensure minimum livelihoodguarantee and meet recipients’ urgent needs. This practice is of great importance duringChina’s economic transition. Under the multidimensional review mechanism, the exclusionerror of urban Dibao is in the range of 38.45% and 66.28%, and the inclusion error isbetween 54.59% and 69.17%. By 2013, Dibao’s targeting efficiency improved significantlyover 2007. In evaluating Dibao’s targeting efficiency, it is more appropriate to adoptmultidimensional criteria instead of income alone. Multidimensional evaluation is also ofgreat importance for evaluating Dibao’s targeting policy.

Keywords: Urban Dibao, targeting, multidimensional, targeting error

JEL Classification Codes: I32, I38, P46

DOI: 10.19602/j.chinaeconomist.2022.01.09