How do policy measures affect the ability of poverty-stricken households to cope with external shocks? From the perspective of differences in the human capital endowment of households.

Abstract

Human capital plays a vital role in poverty-stricken households' efforts to cope with external shocks. Improving the human capital of poverty-stricken households to help them address external shocks can enhance the sustainability of poverty-stricken household livelihoods and support poverty alleviation. In this study, households with dependent children and older members were selected from questionnaires covering 6,463 poverty-stricken households from 33 poverty alleviation districts and counties in Chongqing municipality, China. Multiple linear regression model and stepwise regression methods were then used to compare the effects of the number of household members supported and the number of those working on the increase in income among poverty-stricken and nonpoverty-stricken households. Finally, the correlations between policy measures, dependent household members and household labor were examined. The results show the following: (1) Policy measures can alleviate the negative impact of a household's dependent population on household income. (2) Poverty-stricken households' access to policy support is closely related to the characteristics of their human capital. The household's dependent members and laborers are effectively protected by safety net and cargo net policies. (3) Policy measures can mitigate the impact of COVID-19 on the income of nonagricultural laborers while increasing the income of agricultural laborers. The findings show that the ability of poverty-stricken households to overcome poverty and deal with external shocks can be increased by revitalizing rural industries, linking the development of rural industries with the income of poverty-stricken households, and rationally using rural labor resources.