Anti-Poverty Policy Laboratory

Labour income incentive scheme

Labor Income Incentive Scheme is a CCT program carried out by the Center since August 2014 in Wutongqiao District, Leshan, which aims to introduce an incentive-compatible mechanism for poverty reduction. It transfers cash to poor households that are able to work conditional on their boosting income from labor, thus increasing the probability of households to work. The mecha-nism will significantly increase the beneficiaries’ labor earnings and reduce their welfare de-pendency resulting from conventional no-strings-attached cash transfer programs. By the end of 2016, a total of over 150 households received cash grants for their labor income. The average payment of all beneficiary households is around 400 yuan per month.

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