Human Capital and Rural Households’ Vulnerability to Relative Poverty: Evidence from China

Abstract

Drawing on three-wave panel data from China Family Panel Studies (CFPS) of 2014, 2016, and 2018, this paper measures rural households’ vulnerability to relative poverty using the three-stage feasible generalized least squares (FGLS) model. We analyze the impact of human capital on vulnerability to relative poverty by using the two-way fixed-effected model and panel quantile regression. Empirical results exhibited that labor force migration, health, education, and working experience all have a negative effect on vulnerability to relative poverty. Labor force migration has the greatest negative effect among the four factors. Heterogeneity analysis results exhibited that labor force migration has the biggest negative effect in the east region. Health and education have the greatest negative impact in the central region. Labor force migration, health, work experience, and education have a greater effect on nonpoor households than on poor households.