Does cash transfer program improve recipients' social participation? Evidence from low-income households data in China

Enhancing social participation among low-income households has long been regarded as a component of building an inclusive and equitable society. This study examines the association between China's Dibao program and social participation among beneficiaries. Furthermore, it explores the heterogeneous effects between urban and rural groups as well as across age groups. We analyzed panel data from 2015 to 2017 and combined propensity score matching and differences-in-differences methods to examine the effects of Dibao on recipients' social participation in participatory governance (PG) service co-production (SC), and relational participation. This study demonstrates that receiving Dibao greatly enhances beneficiaries' social participation, PG, and SC, but has minimal impact on relational involvement. According to heterogeneity analysis, urban and middle-aged recipients are significantly affected by Dibao. Future reforms of Dibao and similar welfare programs need to tailor based on geographic differences and demographic diversity to enhance recipients' social participation.