Comparative Analysis On The Vulnerability To Poverty Of Chinese Rural Households

Over the years, the poverty research focuses on poverty has taken place under study, such as the incidence of poverty, these methods are static. A household’s observed poverty level is-an ex-post measure of a household’a well-being(or lack thereof). But poverty is a stochastic phenomenon and the current poverty level of a household, may not necessarily be a good guide to the household’s expected poverty in the future. Therefore, the possible future of poverty research, contribute to research and develop a more pro-poor policy purposes, or to take measures to prevent the incidence of poverty. So, we introduce the concept of the vulnerability to poverty, as a description that possibility of the future status poverty of the individual or family can be well described by a single individual or group may be poverty in the future.The paper has two aims:first, to provide a conceptual and methodological overview of the uses and empirical implementation of vulnerability assessments using household-level data; and second, to demonstrate, through a number of illustrative examples, how the general methodological approach can be usefully applied and tailored to particular contexts and data, to. yield policy-relevant insights about the nature and extent of vulnerability.In this paper, we first introduce the concept of the vulnerability to poverty, We begin by clarifying the links between the concepts of poverty, risk and vulnerability, there are three important concepts of the vulnerability to poverty:Vulnerability as Expected Poverty (VEP), Vulnerability as Uninsured Exposure to Risk (VER),.. and Vulnerability as Uninsured Exposure to Risk (VER). We use VEP in this paper.The paper is organized as follows. The next section provides a conceptual overview. We begin by clarifying the links between the concepts of poverty, risk and vulnerability. We then detail the rationale for vulnerability assessments. We then outline a simple taxonomy for thinking about the multiple interlinked factors that make households vulnerable to poverty and use this taxonomy to suggest ways in which a vulnerability assessment might be organized. The section ends with an operational definition of vulnerability to poverty that can, in principle, be taken to the data. And then we outline a general and fairly flexible methodology for empirical implementing vulnerability assessments using household data. After summarizing the basic approach, we turn to a detailed discussion of the various steps involved and the econometric issues that arise at each step. The last section of this paper contains a series of illustrative examples demonstrating the ways in which vulnerability estimates might be used to inform policy.