Targeted Poverty Alleviation and Human Capital Investment: Evidence From China

ABSTRACT Understanding whether large scale antipoverty interventions can translate short term poverty relief into sustained human capital accumulation is central to evaluating their long term development effects. Using six waves of balanced panel data from the China Family Panel Studies between 2012 and 2022, this study examines the effect of China's Targeted Poverty Alleviation policy on household human capital investment. Estimates from a multi‐period difference in differences model show that the policy significantly increased household spending on education and healthcare among households eligible at baseline. The findings remain robust across alternative samples, outcome measures, model specifications, and placebo tests. Additional analyses suggest that the policy was associated with lower income uncertainty, greater healthcare utilization, and stronger confidence about future life. The positive estimates are more evident among rural households, employed respondents, and households with children or older members. These findings highlight the role of antipoverty policy in supporting long term household human capital accumulation.