# Can Targeted Poverty Alleviation Program Reduce Depression? Evidence From China

## TL;DR

This study finds that China's poverty alleviation program reduces depression by improving healthcare and family living conditions.

## Contribution

The study provides empirical evidence on how poverty alleviation can reduce depression through specific socioeconomic mechanisms.

## Key findings

- The TPA program reduces depression scores by 0.116 points.
- Improvements in local medical conditions mediate the program's effects.
- Living in a family environment increases due to the program.

## Abstract

This study aimed to examine whether China’s Targeted Poverty Alleviation (TPA) program mitigates depression and explores the mechanisms through which the TPA program affects individuals’ depression.

Using the data from the China Family Panel Studies (CFPS) survey from 2012 to 2020, we employ a Difference-in-Difference model to analyze the effect of the TPA program on individuals’ depression levels.

Our findings indicate that the TPA program reduces depression scores by 0.116 points, accounting for 6.82% of the standard deviation of depression scores. Further analyses indicate that these effects are mediated through improvements in local medical conditions, reductions in household healthcare spending, increases in household entertainment expenditures, and greater likelihood of living in family.

This study showed that the TPA program significantly mitigates individuals’ depression levels. The possible channels include (1) improving local medical conditions, (2) cutting down household healthcare spending, (3) increasing household entertainment expenses, and (4) increasing the likelihood of living in family.