Expenditures on education and health care and poverty in rural China

Household health and education expenditures have increased rapidly in rural China. Based on data from households in 18 provinces in 1988 and in 1995, we investigate how such expenditures affect poverty assessments. After accounting for these expenditures, we cannot state that poverty decreased during this period of rapid economic growth. Further, poverty in China in 1995 appears to be even more concentrated in the west and in officially designated poor areas when education and health expenditures are considered. (C) 2003 Elsevier Inc. All rights reserved.