by youthscholars

A research paper from the UBI Youth Scholars Spring 2025 Program has examined how universal basic income (UBI) could supplement China’s existing welfare structure, particularly its minimum living allowance system known as Dibao.

The study, authored by university students Harry Lv and Benjamin Yang, presents a comparative analysis of UBI and China’s current insurance and assistance systems, focusing on how each contributes to socioeconomic security. The paper observes that while China’s Dibao program has played a role in reducing China’s extreme poverty, it remains limited in coverage, subject to regional disparities, and may unintentionally discourage employment.

UBI, in contrast, is presented as a more uniform and administratively simple approach that could enhance baseline economic security without the need for income verification. The authors argue that a basic income model could help raise the level of support for low-income families, reduce administrative burdens, and promote labor mobility.

The report suggests that China could experiment with pilot programs in selected regions to explore how basic income might work alongside existing social insurance. The authors also recommend that future reforms address the “cliff effect” in the current system, where modest income gains can lead to a sudden loss of benefits.

“Basic income provides residents with a stable source of income, while the subsistence allowance system alleviates residents’ concerns about future risks, making them more willing to consume and invest, thereby driving economic development,” the report concluded.

This study is part of BIEN’s UBI Youth Scholars initiative, which supports young researchers in exploring social policy innovation through evidence-based research. The report draws from international case studies, including experiments in Finland and Alaska, while grounding its analysis in the Chinese policy context.