Effects Of Poverty Salvation Policies

The Reform and Opening help our country's economy to keep on rapid development. However, unequal distribution of income led to poverty, especially the urban poverty problem has aroused extensive attention of the community. To solve the increasingly serious problem of urban poverty, government has promulgated series of policies to help the poor, September 1997, to resolve financial difficult problems of poor, the State Council issues Notify on Constitute Guarantee System of the Minimum Standard of Living for Urban Residents Nation Widely. The Study of this issue more and more.In this paper, we start from the definition of poverty from all angles, from domestic and abroad on two aspects of the definition of poverty, measurement method, application of statistical methods for calculating our object of study-Poverty Situation in Jilin Province, we give a more representative international poverty index-FGT, FGT has good recognition of poverty-stricken population, be able to accurately draw each own contribution to the overall degree of poverty, in addition we have expounded China's current problems of the urban poor status quo, instructed on the forefront of the domestic research, analysis of China's existing policy of poverty relief. We had analyzed of the causes of poverty in quantitative, we used logistic regression analysis model to measure the factors that led to the urban poverty, and presented the quantitative analysis and characterization. Unemployment and education cost were the two most important factors leading to the urban poverty. The cause of poverty analysis is for us to evaluate the policy and expected to prepare.Micro modules is the object of micro simulation,using computer to simulate the state and behavior, on the status of individual microscopic statistical analysis to discover the laws governing the operation of economic. In this paper, we use micro-simulation technology to study the role of poverty relief policy effects.The role of public policies effect in two stages: The first stage is the arithmetic micro-simulation model(static model), the individual in the population structure and behavior reflect remain unchanged, ignore individual behavioral responses, analysis the existing and non-existing economic policy's income distribution effects and financial effects; the second stage is micro-simulation model, policy changes in the corresponding of variables change, results in the individual's act(Labor supply, Consume, Investment and so on), this is called Short-term effects, it is the basis of the effect of policies.Secondly, we use arithmetic model of the poverty relief policy, showed the immediate effect of the policy, simulation of the most representative of the minimum wage and the minimum life security policy. The results showed that the immediate implementation of the policy, this reform is essential for the minimal needs of poverty and income distribution inequality has significantly improved. Minimum wage reform can alleviate poverty, however, the trend is not very obvious, the impact is not great, is a process tends to level, reasons may include the following: First of all minimum wage reform is specific to the employment of people in the family, for poor families, raising the minimum wage must be evenly distributed, this effect will be reduced accordingly; secondly, the Gini coefficient is decreasing, the minimum wage reform is has a definite role to change the distribution of income inequality; finally, the increase in the minimum wage resulting in the increase in business spending, this situation, the Government should adopt certain measures to take care of enterprises.We have studied the poverty relief policy behavior model, it is also the Short-term effect of policy. Through the establishment of labor supply structure model, we have simulated the minimum wage and the minimum life security policy, from the employment effects and the income gap between three aspects of poverty, we get quantitative analysis of policy. The minimum livelihood guarantee a change, the role played by the poor is limited, if more than 30 percent increase, the impact is negative, Gini coefficient and participation rates increased with the minimal needs of gradually reducing, had a negative effect, think that is mainly because people's psychological inertia, when the income gap between the minimal needs and employment is small,many individuals give up, opt for minimal needs, we should considered this policy when policy formulation. Raising the minimum wage policy, reducing the poverty rate, FGT, for the reduction of poverty played a role, the reduction of Gini coefficient means the minimum wage help to the adjustment of income distribution inequality, the increasing of participate rate means employment rate has improved; in addition we have reached a 20 percent increase in the minimum wage is the optimal choice.Finally, we study the process and results of China's urban poverty alleviation and poverty relief policy development has played a constructive role. Micro-simulation model is the strong public policy tool to evaluate the effect of public policy.