Measuring Child Poverty in Hong Kong: Sensitivity to the Choice of Equivalence Scale

In September 2013, the Government of the Hong Kong Special Administrative Region established Hong Kong’s first official poverty line. The new poverty line is used as a major yardstick in social welfare policy formulation and in the allocation of public resources aimed at combating poverty; despite its importance, however, its robustness has not been examined. Using data from the 2011 Population Census, we examined the robustness of the official poverty line in measuring child poverty in Hong Kong through assessing the sensitivity of child poverty measures to the choice of different equivalence scales. The results show that the child poverty profile in Hong Kong is generally not sensitive to the choice of equivalence scale and that the official poverty line correctly identifies those children who live in poverty. Rates of child poverty among boys and girls of different ages, with different family backgrounds and living in households with different compositions, were calculated and ranked using different equivalence scales; these rankings were found to be very similar to those yielded by the official poverty measure. Thus, the choice of adult equivalence scale does not favour any subgroup. We also examined the child poverty profile in Hong Kong based on the official poverty measure and with our 2011 census data. We found that the children in our sample were more likely than the adults to live in poverty household; that more than half of the children who lived in poverty belonged to working poor families; and that children living in public housing were particularly likely to suffer from severe poverty. In light of these findings, we urge the government to prioritise taking measures aimed at lifting children out of poverty.     

Poverty and Headship in Post-apartheid South Africa, 1997–2006

In this paper, I investigate the characteristics and poverty status of female- and male-headed households in South Africa using nationally representative household survey data from the October Household Surveys (1997 and 1999) and the General Household Surveys (2004 and 2006). This decade (1997–2006) represents a period for which there is an extensive poverty literature documenting (particularly in the 2000 s) an overall decrease in the poverty headcount rate. At the same time, however, there is evidence to suggest that female-headed households have a far higher risk of poverty and that the poverty differential between female- and male-headed households widened over the period. The aim of this paper is to identify some of the main reasons that female-headed households are more vulnerable to poverty in post-apartheid South Africa and why poverty has decreased by more in male-headed households (relative to female-headed households). The study examines the key features which distinguish female- and male-headed households and whether these have changed over time. In order to link these characteristics with the poverty differential between female- and male-headed households, I then examine whether (and by how much) controlling for the observable differences between female- and male-headed households reduces the significantly greater risk of poverty in female-headed households.     

Predicting Consumption Poverty using Non-Consumption Indicators: Experiments using Indonesian Data

Household consumption expenditure data is crucial for calculating important welfare measures such as poverty headcount rate. However, collecting such data is difficult and cumbersome. As an alternative, we experiment with three methods – consumption correlates model, poverty probability model, and wealth index principal components analysis (PCA) – to predict consumption expenditure and poverty using non-consumption indicators. The purpose is to use these alternatives for rapid monitoring and appraisal of social welfare as an early warning system. We test each method’s performance and find that the consumption correlates model is the best method to predict poverty quickly and relatively accurately. We find that education level, asset ownership, and consumption pattern are the best predictors of expenditure and poverty.     

Household Budgets as a Social Indicator of Poverty and Inequality in South Africa

In the absence of a universally accepted method of calculating poverty, household expenditure can be used to provide an indication of inequality of wealth and serve as an indicator of poverty. Household expenditure comprises expenditure of private households on goods and services, irrespective of their durability. The portion of household budgets allocated to different types of goods and services provides an indication of the material standard of living of a population. The article discusses different definitions of poverty and compares the state of poverty according to these definitions in selected countries. This is followed by an analysis of South Africa’s economic position in the world and a comparison of the household budgets and demographic profile of South African households that fall into different income groups in order to identify the differences between the poorest and the wealthiest households in South Africa. Income inequality in South Africa is further elucidated by means of the Gini coefficient. A comparison is also made between the household budgets of the poorest households with the minimum financial living level requirements in South Africa to maintain their health and have acceptable standards of hygiene and sufficient clothing for their needs.     

Assessing Asset Indices

The use of asset indices in welfare analysis and poverty targeting is increasing, especially in cases in which data on expenditures are unavailable or hard to collect. We compare alternative approaches to welfare measurement. Our analysis shows that inferences about inequalities in education, health care use, fertility, and child mortality, as well as labor market outcomes, are quite robust to the economic status measure used. Different measures—most significantly per capita expenditures versus the class of asset indices—do not, however, yield identical household rankings. Two factors stand out in predicting the degree of congruence in rankings. First is the extent to which expenditures can be explained by observed household and community characteristics. Rankings are most similar in settings with small transitory shocks to expenditure or with little random measurement error in expenditure. Second is the extent to which expenditures are dominated by individually consumed goods, such as food. Asset indices are typically derived from indicators of goods that are effectively public at the household level, while expenditures are often dominated by food, an almost exclusively private good. In settings in which individually consumed goods are the main component of expenditures, asset indices and per capita consumption yield the least similar results.     

Household Trajectories in Rural Ethiopia: What Can a Mixed Method Approach Tell Us About the Impact of Poverty on Children?

The paper explores the dynamics of child and household poverty in rural Ethiopia using three rounds of household survey and qualitative data collected by Young Lives, a longitudinal study of child poverty. It uses a mixed-method taxonomy of poverty to classify children and their households into four groups, analyse their movements in and out of poverty, and explore the underlying factors. The final section of the paper uses qualitative case studies to explore child welfare dynamics in more detail, looking at the interplay between the progress or decline of households and that of children within those households. It concludes that while the percentage of poor households within this sample reduced from 50 to 20 % between rounds 1 and 3 (2002–2009), these changes were not always beneficial to children and did not reach nearly 1 in 10 households classified as ultra-poor. A deepened understanding of those changes, employing both quantitative and qualitative methods, is deemed crucial in post-2015 millennium development goal discussions.     

Ethno-Linguistic Affiliation and Income Poverty in Native Households with Children: Finland 1987–2011

The child poverty rate has increased noticeably in Finland since the mid-1990s, and there are numerous studies in this area. However, little is known about child poverty in the two native and equal population groups, Finnish speakers and Swedish speakers. Using detailed register-based data that cover the period 1987–2011, we analyze how child poverty depends on parental ethno-linguistic affiliation, and whether there is variation in income poverty across these households over time. The poverty measure is relative and based on equalized taxable household income of households with children. Odds of poverty are estimated with logistic regression models using generalized estimating equations to account for repeated observations at the household level. The analyses are restricted to areas with both Swedish- and Finnish-speaking settlement. Single-parent and two-parent households are analyzed separately. Poverty rates increased in all major types of households during the study period, but variation by ethno-linguistic affiliation was fairly modest. Swedish-speaking single-parent and two-parent households experienced a smaller increase in the poverty rate than Finnish-speaking ones, while patterns observed for exogamous households were less clear. The contribution of control variables on the ethno-linguistic poverty differences was modest. Considering that the ethno-linguistic groups studied are indigenous and equal, the small differences in poverty rates between Finnish speakers and Swedish speakers are evidence of a democratic and well-functioning welfare state, although the increasing overall poverty rates over time require future scrutiny by both policy makers and researchers.

     

Gender and Multidimensional Poverty in South Africa: Applying the Global Multidimensional Poverty Index (MPI)

Recent work has shown that the gender gap in income poverty has widened in post-apartheid South Africa even though overall poverty levels have declined. One of the main criticisms of money-metric studies of gendered poverty differences is that income is only one dimension of poverty and that other measures of welfare may better reflect the relative well-being of women and female-headed households. This article presents a multidimensional approach to measuring the gender poverty gap in post-apartheid South Africa. Using data from the 2008 wave of the South African National Income Dynamic Study, the internationally comparable multidimensional poverty index (the MPI) is used to estimate gender differences in a number of different achievements. The findings suggest that the multidimensional gender poverty gap is similar to the poverty gap measured by the conventional money-metric approach at several national poverty lines. However, the MPI poverty differential between female- and male-headed households is slightly narrower than the income poverty gap between these two household types. In order to explore these findings further, the paper decomposes the components of multidimensional poverty by gender and for both female- and male-headed households. The paper concludes by considering how greater investments in health care delivery and in basic services, particularly in rural areas, may yield progress towards gender equality.     

Child Mobility,Maternal Status,and Household Composition in Rural South Africa

This article examines the influence of maternal status, socioeconomic status of the household, and household composition on the mobility of children aged 0–14 in Mpumalanga Province, South Africa, from 1999 to 2008. Using data from the Agincourt Health and Demographic Surveillance System, we found that children whose mothers were temporary migrants, living elsewhere, or dead had higher odds of moving than children whose mothers were coresident. Older children and children living in richer households faced lower odds of mobility. For children whose mothers were coresident, there was no effect of maternal substitutes on child mobility. However, among children whose mothers were temporary migrants or living elsewhere, the presence of prime-aged and elderly females lowered the odds of mobility. For maternal orphans, the presence of elderly women in the household lowered their odds of mobility. The results underscore the importance of examining the conditions under which children move in order to strengthen service delivery targeted at safeguarding children’s well-being.     

The National Work–Life Balance Index©: The European Case

More than 5 years since the outbreak of the global financial crisis, a flurry of evidence is emerging on the effects of the ensuing economic downturn on unemployment and poverty rates in rich countries, but less is known about cross-country differences in subjective assessments of the crisis and whether adults in households with children were affected to a greater extent. This paper investigates differences in the perceived impact of the economic crisis between adults in households with and without children in 17 European countries, using data from the Life in Transition Survey 2010 in a multilevel modelling framework. It also explores differences in the coping strategies that households adopted to deal with the decline in income or economic activity. Everything else being equal, perceptions of the crisis were more widespread in countries with higher rates of child poverty, lower economic growth and lower GDP per capita. Across countries, perceptions of the crisis closely trailed subjective indicators of financial difficulties from other international surveys conducted in 2010. Adults in households with children were more likely to report an impact of the crisis, with larger differences in countries with higher rates of monetary child poverty. Adults in households with children also adopted a greater variety of coping strategies than the rest, prioritizing expenditure on basic necessities, while cutting back on luxuries and holidays. Nevertheless, many still reported reduced consumption of staple foods as a result of economic difficulties.     

Time Poverty Thresholds and Rates for the US Population

Time constraints, like money constraints, affect Americans’ well-being. This paper defines what it means to be time poor based on the concepts of necessary and committed time and presents time poverty thresholds and rates for the US population and certain subgroups. Multivariate regression techniques are used to identify the key variables associated with discretionary time and time poverty. The data confirm the idea that individuals in households with children have less discretionary time and are thus more likely to be time poor than those in households without children. Controlling for other household characteristics, an additional child reduces a household adult’s daily discretionary time by 35 min. Surprisingly, while one might expect the necessary and committed activities required of an individual to be less in a two-adult household with children than in a one-adult household with children because child care can be shared, the data show that the presence of such a second adult only marginally reduces the necessary and committed time burden of an individual household member. Perhaps even more surprisingly, household income is not a statistically significant correlate of discretionary time or time poverty.     

Food Poverty,Vulnerability, and Food Consumption Inequality Among Smallholder Households in Ghana: A Gender-Based Perspective

We examined gender-based household welfare differences in Ghana among smallholder households. We measured disparities in welfare outcomes (food poverty, vulnerability, and food consumption inequality) across male and female household heads and identified the set of covariates influencing them. The study utilizes a dataset from a farm household survey undertaken in Northern Ghana from October to December 2018. A multistage sampling approach was adopted in selecting 900 farm households. The Oaxaca–Blinder mean and Recentered Inference Function decomposition techniques highlighted the sources of gender differentials in household welfare outcomes. The findings indicate a significant gap in food consumption expenditure per capita and household dietary diversity scores between male- and female- headed households, and these gaps are as high as 28.2% and 18.1%, respectively. However, there are no statistically significant differences in vulnerability to food poverty between male- and female-headed households. The Lorenz curves confirm inequality in gendered households’ food consumption expenditure and dietary diversity scores. This study highlights the existence of systemic female-headed household vulnerability to food poverty in Ghana. This study provides significant evidence of the need for policymakers to address food systems’ structural deficiencies and inequalities with gender in mind.

     

Childhood and Capability Deprivation in Germany: A Quantitative Analysis Using German Socio-Economic Panel Data

Child poverty has been widely discussed in Germany since the publication of the third official Poverty and Wealth Report of the German government in 2008 which—inter alia—focused on the situation of children and families. However, child poverty is not only caused by low household incomes and impacts of child poverty are not only restricted to financial consequences. The capability approach takes into account this multidimensionality of well-being and poverty of children. It conceptualizes human well-being as not only depending on financial means but also gives the same importance to the personal and social conversion factors which determine how far financial means can be converted into personal well-being. Before 2008 the capability approach had only been applied to the well-being of adults in Germany, but not specifically to the well-being of children. However, there are several reasons why a capability analysis for children will differ from a capability analysis for adults. Adults’ capability sets comprise dimensions that are less relevant for small children while other valuable capabilities have to be added. Furthermore the capability set depends to a large extent on the age of the child. The paper focuses on a multidimensional poverty analysis in the capability perspective of 5–6 years old children. In the domains of “Education/Leisure”, “Health”, “Social Participation” and “Income” child poverty is measured by predefined indicators. The relationship to the social and personal conversion factors of the caretakers is then evaluated. Additionally, a multidimensional poverty measure is analyzed.     

Monitoring Progress in Child Poverty Reduction: Methodological Insights and Illustration to the Case Study of Bangladesh

Important steps have been taken at international summits to set up goals and targets to improve the wellbeing of children worldwide. Now the world also has more and better data to monitor progress. This paper presents a new approach to monitoring progress in child poverty reduction based on the Alkire and Foster adjusted headcount ratio and an array of complementary techniques. A theoretical discussion is accompanied by an assessment of child poverty reduction in Bangladesh based on four rounds of the demographic household survey (1997–2007). Emphasis is given to dimensional monotonicity and decomposability as desirable properties of multidimensional poverty measures. Complementary techniques for analysing changes over time are also illustrated, including the Shapley decomposition of changes in overall poverty, as well as a range of robustness tests and statistical significance tests. The results from Bangladesh illustrate the value added of these new tools and the information they provide for policy. The analysis reveals two paths to multidimensional poverty reduction by either decreasing the incidence of poverty or its intensity, and exposes an uneven distribution of national gains across geographical divisions. The methodology allows an integrated analysis of overall changes yet simultaneously examines progress in each region and in each dimension, retaining the positive features of dashboard approaches. The empirical evidence highlights the need to move beyond the headcount ratio towards new measures of child poverty that reflect the intensity of poverty and multiple deprivations that affect poor children at the same time.     

Familial Effect on Child Poverty in Hong Kong Immigrant Families

This study investigated how family context affect poverty disparities between young children of immigrants from the Mainland China and children of local families whose parents were born in Hong Kong using 2006 bicensus data. 12,609 and 12,753 children of immigrant and local families were included in our data analyses. We find higher child poverty rates in immigrant families than in local families. Moreover, we found that family structure (single-parent vs. 2-parent), assimilation (first vs. second generation children of immigrant families), and parental human capital characteristics are significantly associated with the child poverty risk. Surprisingly, the impact of immigrant status on child poverty rates is stronger in 2-parent households than in single-parent households while child poverty declines associated with increasing assimilation defined by generational status of children are greater in 2-parent immigrant families than the corresponding declines in single-parent immigrant families. The implications of our results in intergenerational poverty are discussed.     

Welfare Receipt Among Children Living with Grandparents

Considerable increases in the numbers of children living with grandparents have prompted concerns over their economic well-being and grandparents’ use of welfare programs. Using data from the Survey of Income and Program Participation, I profile the economic well-being of children living with grandparents and estimate the likelihood of receiving two welfare programs: food stamps and Temporary Assistance for Needy Families (TANF). Findings suggest that identifying the exact living arrangements of children is pivotal to understanding differences in economic disadvantage and welfare receipt among children living with grandparents. Although children in grandmother-only, no parent present families are the most likely to be poor, they are not the children most likely to receive welfare. The children most likely to receive welfare live with their single mothers and grandparents in three-generation households.     

Familial Influences on Poverty Among Young Children in Black Immigrant,U.S.-born Black,and Nonblack Immigrant Families

This study examines how familial contexts affect poverty disparities between the children of immigrant and U.S.-born blacks, and among black and nonblack children of immigrants. Despite lower gross child poverty rates in immigrant than in U.S.-born black families, accounting for differences in family structure reveals that child poverty risks among blacks are highest in single-parent black immigrant families. In addition, within two-parent immigrant families, child poverty declines associated with increasing assimilation are greater than the respective declines in single-parent families. The heads of black immigrant households have more schooling than those of native-black households. However, increased schooling has a weaker negative association with child poverty among the former than among the latter. In terms of racial disparities among the children of immigrants, poverty rates are higher among black than nonblack children. This black disadvantage is, however, driven by the outcomes of first-generation children of African and Hispanic-black immigrants. The results also show that although children in refugee families face elevated poverty risks, these risks are higher among black than among nonblack children of refugees. In addition, the poverty-reducing impact associated with having an English-proficient household head is about three times lower among black children of immigrants than among non-Hispanic white children of immigrants.     

Does race matter? Children's height in Brazil and South Africa

I examine racial differences in child stunting in mid-1990s South Africa and Brazil, two multiracial societies with different histories of legal support for racial discrimination. Using data from nationally representative household samples linked to community-level measures, the analysis shows that racial inequality in the distribution of socioeconomic resources across households and communities explains much of the racial difference in stunting in both countries. Even after these factors are controlled, however, the results indicate that in South Africa, nonwhite children are still at greater risk of growth faltering than are white children. The nature of socioeconomic and racial differences in children's growth is examined, and major determinants are discussed. These findings suggest that although state-sanctioned racism may help to explain the greater racial inequality in stunting in South Africa than in Brazil, the eradication of a disadvantage for nonwhites will depend on changes in the same fundamental socioeconomic inequalities that characterize both nations.     

Child Poverty in Vietnam: Providing Insights Using a Country-Specific and Multidimensional Model

Despite a wide under-prioritization, the issue of child poverty has received increasing attention worldwide over the last decade. The acknowledgement in Vietnam that child-specific poverty measurement is crucial for poverty efforts directed towards children, and the current lack thereof, instigated the development of a Vietnam child poverty approach. This paper proposes a country-specific, multidimensional and outcome-based approach for the measurement of the incidence, depth and severity of child poverty. It does so at the level of the individual child using household survey data. The development of such an approach at the level of the individual child presents an appropriate alternative for or supplement to the widely used monetary poverty approach, allowing for the use of compatible analytical methods. Findings suggest that 37% of all children in Vietnam live in poverty, with the most pressing areas of deprivation being water, sanitation and leisure. We do not find evidence for a gender bias but do observe a large urban–rural divide, regional disparities and large ethnic inequalities. We argue that this tailor-made approach is a valuable new tool for policy makers and analysts in Vietnam as it enables identification and analysis of poor children, their characteristics and most pressing areas of deprivation within the country’s specific social and cultural context.     

“a Difficult Life”: The Perceptions and Experience of Poverty in South Africa

The purpose of this article is to provide a fuller and more integrated understanding of poverty based on the results of a nation wide participatory study recently completed in South Africa. A surprisingly consistent view of poverty emerges from the study which includes social isolation, malnourished children, crowded homes, the use of basic energy sources, no employment, and fragmented households. A clear image of what results from extreme poverty also emerges comprising continuous ill health, arduous and often hazardous work for virtually no income, no power to influence change, and high levels of anxiety and stress. The article concludes that conventional definitions of poverty do not fully describe the experience of poverty as analysed by the poor themselves. Instead, the multidimensional nature of poverty suggests that three basic concepts would be useful in any analysis of extent, nature and persistence of poverty. These are sufficiency, access and vulnerability.