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<p>Unconditional cash transfer (UCT) programs represent a vital instrument for global poverty reduction, yet the diverse behavioral incentives they engender remain a subject of intense debate. This research examines how the Rural Dibao—China’s massive UCT program—affects multidimensional poverty by developing an analytical framework titled “Translating Income into Capability.” Using data from the China Household Finance Survey (2015–2017), we find that Rural Dibao significantly decreases both the multidimensional poverty incidence (H) and the adjusted headcount ratio (M<sub>0</sub>). However, its impact on poverty intensity (A) is not statistically significant. Mechanism analysis reveals that human capital investment and welfare dependence are the principal channels driving these outcomes. Furthermore, the educational attainment of household heads and the quality of public services significantly moderate the program’s poverty reduction efficacy.</p>

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The Multidimensional Impacts of the Unconditional Cash Transfers Program: Evidence from Rural Dibao in China

  • 期刊论文

  • 发表日期：

    2026年7月21日

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  • Jikun Tao,
  • Peidong Sun

摘要

Unconditional cash transfer (UCT) programs represent a vital instrument for global poverty reduction, yet the diverse behavioral incentives they engender remain a subject of intense debate. This research examines how the Rural Dibao—China’s massive UCT program—affects multidimensional poverty by developing an analytical framework titled “Translating Income into Capability.” Using data from the China Household Finance Survey (2015–2017), we find that Rural Dibao significantly decreases both the multidimensional poverty incidence (H) and the adjusted headcount ratio (M0). However, its impact on poverty intensity (A) is not statistically significant. Mechanism analysis reveals that human capital investment and welfare dependence are the principal channels driving these outcomes. Furthermore, the educational attainment of household heads and the quality of public services significantly moderate the program’s poverty reduction efficacy.