In social assistance programmes, it is generally believed that applying the principle of selectivity leads to welfare stigma. Earlier studies have shown that the causes of welfare stigma differ from country to country. The object of this article is to explore how welfare stigma is generated in the most important social assistance programme in China – the Urban Minimum Living Standard Guarantee Scheme, or Dibao – in terms of both system design and individual characteristics. Analysis of data on Dibao, collected in 29 provinces in 2015, reveals that the poorest families perceive less stigma, and that this can be accounted for by the generosity of welfare benefits and other programmes attached to Dibao. In addition, welfare stigma is still fostered by the ways in which means testing is implemented. Stringent and complicated screening procedures determining eligibility lead to increased stigma.
