How Relevant is Targeting to the Success of an Antipoverty Program?
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World Bank, Washington, DC
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Policy-oriented discussions often assume
that "better targeting" implies larger impacts on
poverty or more cost-effective interventions. The literature
on the economics of targeting warns against that assumption,
but evidence has been scarce. The paper begins with a
critical review of the strengths and weaknesses of the
targeting measures found in practice. It then exploits an
unusually large micro data set for China to estimate
aggregate and local-level poverty impacts of the
country's main urban antipoverty program. Standard
measures of targeting are found to be uninformative, or even
deceptive, about impacts on poverty and cost-effectiveness
in reducing poverty. In program design and evaluation, it
would be better to focus directly on the program's
outcomes for poor people than to rely on prevailing measures
of targeting.
Palabras clave
ADMINISTRATIVE COSTS, ALLOCATION OF RESOURCES, ANTIPOVERTY PROGRAM, ANTIPOVERTY PROGRAMS, CASH TRANSFERS, COST EFFECTIVENESS, COUNTERFACTUAL, DEVELOPING COUNTRIES, DISABILITY, ECONOMIC FACTORS, ECONOMIC GROWTH, ECONOMIC OPPORTUNITIES, FAMILY BENEFITS, FOOD STAMPS, FOOD SUBSIDIES, GUARANTEED MINIMUM INCOME, HEADCOUNT INDEX, HOUSEHOLD INCOME, ILLNESS, IMPACTS ON POVERTY, IMPERFECT INFORMATION, INCOME DISTRIBUTION, INCOME GAINS, INCOME SOURCES, INDICATOR TARGETING, INEQUALITY, INSTRUMENTAL VARIABLES, INTERVENTION, INTERVENTIONS, LABOR FORCE, LABOR SUPPLY, LIVELIHOOD, LOCAL AUTHORITIES, MEAN INCOME, MEASURES OF POVERTY, MUNICIPAL AUTHORITIES, NATIONAL POLICY, NET INCOME, NEW POOR, NUMBER OF PEOPLE, PARTICIPATION RATES, PER CAPITA INCOME, PERFECT TARGETING, PERSONAL COMMUNICATION, POLICY ANALYSIS, POLICY DISCUSSIONS, POLICY MAKERS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLITICAL ECONOMY, POLITICAL ECONOMY OF TARGETING, POLITICAL SUPPORT, POOR, POOR PEOPLE, POPULATION SIZE, POVERTY ALLEVIATION, POVERTY GAP INDEX, POVERTY IMPACTS, POVERTY INDEX, POVERTY LINE, POVERTY MEASURES, POVERTY OUTCOMES, POVERTY RATES, POVERTY REDUCTION, POVERTY TRAPS, PROGRESS, PUBLIC SPENDING, REDUCING POVERTY, SOCIAL ASSISTANCE, SOCIAL SECURITY, SOCIAL WELFARE, SQUARED POVERTY GAP, SQUARED POVERTY GAP INDEX, TARGETED SOCIAL PROGRAMS, TARGETING, TRANSFER PAYMENTS, URBAN AREAS, URBAN POPULATION, URBAN POVERTY, WORKFARE PROGRAMS