Beneath the honor: Urban and rural income disparities in China’s poverty counties

Abstract

Effective poverty alleviation mechanisms are critical for equitable development. China’s Targeted Poverty Alleviation (TPA) strategy includes the Advanced Poverty Alleviation (APA) honor system, which rewards local governments and organizations for exemplary poverty reduction. This study compares income growth trajectories in APA-honored and non-honored impoverished counties during and after the TPA period, using a within-county and regionally differentiated framework. Empirical analysis shows that, although both types of counties exhibit similar overall income growth rates, APA-honored counties display urban-centric growth, with urban areas gaining disproportionately while rural income growth lags. These findings indicate that although APA honors represent better poverty alleviation achievements, they may obscure uneven urban–rural development within counties. We term this pattern “honor masking”. This concept highlights the importance of recalibrating policy to address intra-county inequalities and promote balanced regional development.