Material Deprivation and Working Poor in Hong Kong

In-work poverty is a growing problem in many developed economies. In Hong Kong, there were 200,700 working poor households in 2016, and approximately half of the total poor population in Hong Kong was living in those working poor households. A growing body of literature has examined the problem of the working poor, but most studies have used relative income as a measure of poverty. In this paper, we adopt the material deprivation approach for assessing the poverty situation of in-work poverty households in Hong Kong. We have interviewed 3565 workers in Hong Kong during a survey conduct in 2016. We compare the results of the material deprivation approach with those of the income poverty approach and evaluate the adequacy of the official income poverty line in gauging the situation of in-work poverty. Our findings reinforce existing studies indicating that deprivation offers an important complement to the income poverty line in poverty analysis. Our results show that there is a moderate overlap between workers identified as poor by the deprivation approach and by the income poverty line. And these two groups of workers have very different profiles. The results provide important policy implications for alleviating poverty among the working poor in Hong Kong.

     

Multi-Dimensional Deprivation in the U.S.

This paper presents a comprehensive analysis of multidimensional deprivation in the U.S. since the Great Recession, from 2008 to 2013. We estimate a Multidimensional Deprivation Index by compiling individual level data on several well-being dimensions from the American Community Survey. Our results indicate that the proportion of the population that is multidimensional deprived averages about 15 percent, which exceeds the prevalence of official income poverty. Lack of education, severe housing burden and lack of health insurance were some of the dimensions in which Americans were most deprived in. Though deprivation increased during the recession, it trended towards a decline between 2010 and 2013. Unlike the official and the supplemental poverty measure which did not show any decline, the deprivation index better reflects the economic recovery since the recession. Overall, the prevalence of deprivation was higher in the southern and the western states and among the Asian and the Hispanic population. Importantly, there was not much overlap between individuals who were income poor and those who were multidimensional deprived. In fact, almost 30 % of individuals with incomes slightly above the poverty threshold experienced multiple deprivations. Our analysis underscores the need to look beyond income based poverty statistics in order to fully realize the impact of the recession on individuals’ well-being.     

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.     

Capability Deprivation and Income Poverty in the United States, 1994 and 2004: Measurement Outcomes and Demographic Profiles

Shifting focus from income to capability signifies an important milestone toward accurately measuring poverty and deprivation. This paper operationalizes capability deprivation in the United States and compares measurement outcomes among various capability approaches and between capability and income spaces. Of the three capability approaches examined, the factor score absolute approach suggests a greater extent of deprivation and more comprehensive demographic profiles of the deprived. Additionally, I find that using the capability space may further attenuate the extent of deprivation over that using the income space and alter somewhat the stereotypical profiles of the poor and deprived.     

Poverty,Inequality and Deprivation in South Africa: An Analysis of the 1993 SALDRU Survey

This paper analyses poverty and inequality in South Africa based on data from a comprehensive multi-purpose household survey undertaken in 1993 to provide baseline statistics on poverty and its determinants to the new government. The paper shows that South Africa has among the highest levels of income inequality in the world and compares poorly in most social indicators to countries with similar income levels. Much of the poverty in the country is a direct result of apartheid policies that denied equal access to education, employment, services, and resources to the black population of the country. As a result, poverty has a very strong racial dimension with poverty concentrated among the African population. In addition, poverty is much higher in rural areas, and particularly high in the former homelands. Poverty among female-headed households and among children is also higher than average. Moreover, poverty is closely related to poor education and lack of employment. The poor suffer from lack of access to education, quality health care, basic infrastructure, transport, are heavily indebted, have little access to productive resources, and are heavily dependent on remittances and social transfers, particularly social pensions and disability grants. The paper uses an income-based definition of poverty for most of the analysis. In addition, it develops a broad-based index of deprivation including income, employment, wealth, access to services, health, education, and perceptions of satisfaction as its components. While on average the two indicators correspond fairly closely, the income poverty measure misses a considerable number of people who are severely deprived in many of the non-income measures of well-being. This group of severely deprived not identified by the income poverty measure consists predominantly of Africans living in rural areas, concentrated particularly in the province of KwaZulu/Natal.     

Determinants of Poverty and Their Variation Across the Poverty Spectrum: Evidence from Hong Kong,a High-Income Society with a High Poverty Level

This study aims to investigate into the determinants of poverty in Hong Kong. Previous research on poverty, which usually adopted a logistic regression model to examine individuals’ probabilities of being poor, could not adequately reveal the heterogeneity in experiences among people across the poverty spectrum, therefore has limited policy effort to address diverse needs of individuals struggling with poverty. In the present study, this concern is addressed by using a quantile regression model to examine the differential effects of the determinants of poverty across the poverty spectrum. Data were drawn from the Hong Kong Panel Survey for Poverty Alleviation (n?=?1668). Logistic regression indicated that being elderly, being female, not having a partner, from a single-parent household, not being employed, living in public rental housing, have lower educational attainment, and have poor self-rated health, increased the probability of being poor. Informational support was a protective factor of poverty, while several negative life events, such as having family member(s) with disabilities/chronic diseases and having financial burden, were risk factors of poverty. Quantile regression analysis was adopted to further examine the extent to which determinants of poverty unfold across poverty spectrum, which was captured by five groups of “extremely poor”, “deeply poor”, “at the poverty line”, “near poverty” and “marginally poor”. Quantile regression indicated that people living across the poverty spectrum were similarly affected by not having a partner, living in single-parent households and not working. However, extremely poor and deeply poor were more adversely affected by old age than those near poverty and marginally poor. It is also discovered that public rental housing buffered the poverty risks more in those who lived in deep poverty than those who were near poverty and marginally poor. University education protected the near poverty and marginally poor to a larger extent than those who were extremely poor and deeply poor. Information support also buffered the poverty risks, and people living across the poverty spectrum were equally benefited from it.

     

The Quality of Life of Hong Kong’s Poor Households in the 1990s: Levels of Expenditure,Income Security and Poverty

This paper examines the changes in the quality of life of poor households in Hong Kong in the late 1990s by analyzing their levels of expenditure, income security and poverty before and after 1997. Though there have been significant increases in the levels of expenditure among CSSA recipients, the expenditure among these poorest households in Hong Kong is still below that of non-CSSA recipients. Increasing poverty in Hong Kong is the result of increasing housing costs borne by these low expenditure households, who have to squeeze their expenditure on food and other items in order to meet the rising cost of housing. De-industrialisation and mass unemployment have given capital and the state unchecked authority to restructure the economy and to deregulate the labour market. Many low-income households have been hit hard as they faced redundancy, unemployment and wage-cuts after the 1997 Asian financial crisis. What jobs have been created are mostly part-time, temporary and contract jobs, and there has thus been an erosion in both job and income security. The quality of life of poor households is devastating not only in the sense that their living standards are low, but also that they are socially excluded from the mainstream of society.     

The Quality of Life of Hong Kong’s Poor Households in the 1990s: Levels of Expenditure, Income Security and Poverty

This paper examines the changes in the quality of life of poor households in Hong Kong in the late 1990s by analyzing their levels of expenditure, income security and poverty before and after 1997. Though there have been significant increases in the levels of expenditure among CSSA recipients, the expenditure among these poorest households in Hong Kong is still below that of non-CSSA recipients. Increasing poverty in Hong Kong is the result of increasing housing costs borne by these low expenditure households, who have to squeeze their expenditure on food and other items in order to meet the rising cost of housing. De-industrialisation and mass unemployment have given capital and the state unchecked authority to restructure the economy and to deregulate the labour market. Many low-income households have been hit hard as they faced redundancy, unemployment and wage-cuts after the 1997 Asian financial crisis. What jobs have been created are mostly part-time, temporary and contract jobs, and there has thus been an erosion in both job and income security. The quality of life of poor households is devastating not only in the sense that their living standards are low, but also that they are socially excluded from the mainstream of society.     

On ‘Consistent’ Poverty

The measurement of poverty as ‘consistent’ poverty offers a solution to one of the primary problems of poverty measurement within Social Policy of the last three decades. Often treated as if they were synonymous, ‘indirect’ measures of poverty, such as low income measures, and ‘direct’ measures, such as indices of material deprivation, identify surprisingly different people as being poor. In response to this mismatch, a team of Irish researchers put forward a measure which identified respondents in as being in poverty when they experienced both a low standard of living, as measured by deprivation indicators, and a lack of resources, as measured by a low income line. Importantly, they argued that the two measures required an equal weight. In this paper, I present a reconsideration of the consistent poverty measure from both conceptual and empirical perspectives. In particular, I examine the claim that low income and material deprivation measures should be given an ‘equal weight’. I argue that, from a conceptual perspective, the nature of the indicators at hand means that a deprivation-led measurement approach might be understood to align with the definition of poverty which Nolan and Whelan outline and, from an empirical perspective, that it is the material deprivation measure—and not the low income measure—which is particularly effective in identifying individuals at risk of multiple forms of deprivation. However, I argue that greater attention needs to be given to the question of whether indicators of material deprivation provide a sufficient measure of material poverty and suggest that advancing the measurement of material deprivation beyond its relatively rudimentary state represents an important priority for poverty research.     

When Twenty-Four Hours is not Enough: Time Poverty of Working Parents

Individuals can be money poor, time poor or both. While income is the most used indicator of poverty, broader indexes including non-monetary aspects of deprivation have been proposed and measured. As one such measure, our study focuses on the element of deprivation arising from the time deficit of many working people. The usual poverty threshold is calculated as the amount of income to buy the minimum required goods and services from the market. This minimum required purchase is greater for these people since they have less time than the average person to produce some goods and services for themselves at home. So, they need money to buy these in the market in order to maintain the same consumption. The income standard must be supplemented to adequately measure actual poverty. Time use data make it possible to establish time requirements and time availability and provide a measure of time poverty. Using Canadian GSS 1998 data, and building on the work of Vickery (1977, ‚The time poor: A new look at poverty’, The Journal of Human Resources 12(1), pp. 27-48) and of Douthitt (1993, ‚The inclusion of time availability in Canadian poverty measures’, Time-Use Methodology: Toward Consensus (ISTAT, Roma), pp. 83–91), and our own previous study, we estimate time-adjusted poverty thresholds and rates for single and dual parent Canadian families. As expected, we have found high incidence of time deficit among the employed single parents with children. We make a case for the acceptance of a redefined poverty standard for such time-deprived groups.     

Psychological Stress and Parenting Behavior Among Chinese Families: Findings from a Study on Parent Education for Economically Disadvantaged Families

With the recognition of the crucial role of family and with the belief that parents have the greatest influence on a child’s life, family and parent education has been widely practiced in Hong Kong and many other countries as measure for poverty alleviation. A study, employed quantitative method of a cross-sectional parent survey (N = 10,386) was conducted to comprehend needs and parenting practice of poor families, and to identify appropriate strategies to promote family and parent education in Hong Kong. Regression analysis was used to investigate the association between family variables, psychological stress and parenting behavior. The study identified five categories of disadvantaged families and salient factors that distinguished families from the normal population based on the findings of discriminant analysis. Moreover, data indicates that family relationship and social networks are protective factors to economically disadvantaged families, whereas sense of powerlessness amplifies the negative effects of low income. Base on the findings, the paper suggests that strategies for poverty alleviation that focus purely on parenting or parent education are fragmented and fail to address the complexity of poverty as a social issue. A holistic perspective that goes beyond the scope of parent education to support families, adopting a family perspective in poverty-alleviation work and service provision, and addressing barriers constrain parenting are the future service directions.     

Child Poverty Among Hong Kong Ethnic Minorities

This paper analyzes the data from the Population Census of 2011 to identify the characteristics of poor ethnic minority groups in Hong Kong and the factors that are associated with child poverty among these ethnic minorities. The results show that the child poverty level varies between different ethnic groups and that ethnic minorities from developing nations are likely to have a higher poverty level. In particular, Pakistani children have the highest poverty rate among all ethnic groups. The results also show that Pakistani, Nepalese, and Mixed (Chinese and Asian) nationalities have a higher child poverty rate than that of Chinese individuals who constitute the majority of the Hong Kong population. The main reason for this is that, unlike their Chinese counterparts, some of these ethnic minority households have not benefited from their own human capital or their length of exposure in the local society in Hong Kong. And even if they have benefited, the positive impact of these factors on ethnic minority households was much weaker compared to that of Chinese households. These results suggest that ethnic minorities need to be categorized as a separate group in order to assess their specific needs, and assimilation policies, especially support on Chinese language learning, need to be an integral part of the government’s poverty reduction strategy to reduce child poverty among ethnic minorities.     

Multidimensional Targeting: Identifying Beneficiaries of Conditional Cash Transfer Programs

Conditional cash transfer programs (CCTs) have two main objectives: reducing poverty and increasing the human capital of children. To reach these objectives, transfers are given to poor households conditioned on investments in their children’s education, health, and nutrition. Targeting mechanisms used by CCTs have been generally successful in identifying the income poor but have not fared as well in identifying households that under-invest in human capital. These mechanisms do not consider the multidimensional aspect of poverty, even when composite measures are used, as they do not capture each dimension-specific deprivation. This paper proposes a multidimensional targeting approach to identifying beneficiaries that explicitly takes into consideration the multiple objectives of CCTs and the multiple deprivations of the poor household. Results indicate that the proposed multidimensional targeting methodology significantly improves the selection of households with children who are most deprived in the dimensions often relevant to CCTs. In the case of Mexico’s Oportunidades, ex-ante evaluation results indicate that the multidimensional identification of beneficiaries increases the impact of transfers on school attendance compared to alternative targeting models.     

Women and Retirement Planning: Towards the “Feminization of Poverty” in an Aging Hong Kong

ABSTRACT

Hong Kong's population is aging but retirement research is largely missing from the research agenda in Hong Kong. This study, based on a telephone survey of 1,078 respondents, examines middle-aged adult's retirement planning activities in Hong Kong. The findings show men are more likely to be involved in financial planning, while women are more likely to take part in some forms of health, living arrangement and psychological planning for retirement. Further, there are age, education and income differences in the various forms of retirement planning activities within genders. Women are living longer; because of their lack of financial retirement planning, they are prime candidates for poverty. The discussion concludes with policy implications related to assisting midlife individuals, in particular women, in planning for retirement.     

An Exploratory Study of Trust and Material Hardship in Ghana

We explore associations among interpersonal (thick and thin) and institutional (legislative, executive, and judicial) trust and material hardship outcomes in Ghana. We use data from the 2008 Afrobarometer survey. Material hardship is conceptualized in terms of frequency of going without five basic necessities/consumptive deprivations, each of which a separate outcome (food, water, medical care, cooking fuel, and cash income). Five multinomial logistic regression models are estimated. Models also include relevant socioeconomic and cultural factors. The stepwise forward entry method was used to identify important variables for each model, and common and unique predictors of each outcome are discussed. Results suggest that deprivations are trust-specific in Ghana. Interpersonal and institutional trust types matter differentially (for example, trust in parliament/national assembly is a unique food deprivation predictor; trust in courts is a unique water deprivation predictor; and trust in police is a unique cash income deprivation predictor). Common trust predictors across models are thin trust (trust in other Ghanaians) for predicting food and cooking fuel infrequency outcomes and executive trust for predicting water, medical care, and cash income infrequency outcomes. Some of the non-trust variables, like education and ethnicity, were prominent predictors of deprivation outcomes across all models. This is one of the beginning studies to explore micro-level data in an important area of trust and material hardship in Sub-Saharan Africa. The study also attempts to conceptualize material hardship within the context of a developing country and provides insightful results that could be beneficial to other research investigators and further probed in future studies building on this work. The study draws important implications for intervention policies based on analyses of material hardship composite parts which provide insights with great detail into specific target groups on specific component-outcomes.     

Trends in Child Poverty in Hong Kong Immigrant Families

In Hong Kong, child poverty is a serious social problem which may lead to intergenerational poverty, but nevertheless only a few studies have examined this issue, particularly for immigrant families. Using Census data (5 %) from 1981, 1991, 2001, and 2011, we assessed child poverty rates in the past three decades and identified key variables contributing to changes in the risk of child poverty for both immigrant and local families. Our results indicate that child poverty rates in Hong Kong-born families have fluctuated between 14.3 and 15.8 % over the past three decades, while for immigrant families they have increased steadily and substantially from 18.1 % in 1981 to 36.5 % in 2001 and then to 37.5 % in 2011. We show that the increase in immigrant child poverty is associated with changes in the Hong Kong economy that have made it more difficult for such families to adapt to the host society, especially in the 1990s and that this negative effect offset the positive influence of compositional changes among this group of immigrant families in terms of parental education levels and family size. The gap between immigrant and local families in terms of child poverty risk is mainly due to the fact that during the 1990s the negative effect of contextual changes in Hong Kong was cancelled out by the beneficial impact of compositional changes for local families, but not for immigrant families where the latter effect was minimal.     

An Exploratory Study on the Quality of Life of older Chinese People Living alone in Hong Kong

This study successfully interviewed 109 randomly selected Chinese people aged 60 and over living alone in two public housing estates in an urban area of Hong Kong. The results show that mental health status, number of days staying in hospital, life satisfaction, age, and self-esteem are significant factors in predicting the life quality of older Chinese respondents living alone. The explanatory power of this model is 56.4. The results of this study are consistent with previous findings reported in the west and in Hong Kong. A subgroup analysis of those older Chinese respondents living alone who have offspring also living in Hong Kong shows that belief in childrens support in old age, good walking ability, and better self-reported health status via life satisfaction as the mediating variable, better self-reported health status and satisfactory self-reported financial status via self-esteem as the mediating variable, are crucial predictors of quality of life. This model explains 64.2% of the variance in quality of life from a subset of the predictor variables.     

An Exploratory Study on the Quality of Life of older Chinese People Living alone in Hong Kong

This study successfully interviewed 109 randomly selected Chinese people aged 60 and over living alone in two public housing estates in an urban area of Hong Kong. The results show that mental health status, number of days staying in hospital, life satisfaction, age, and self-esteem are significant factors in predicting the life quality of older Chinese respondents living alone. The explanatory power of this model is 56.4. The results of this study are consistent with previous findings reported in the west and in Hong Kong. A subgroup analysis of those older Chinese respondents living alone who have offspring also living in Hong Kong shows that belief in childrens’ support in old age, good walking ability, and better self-reported health status via life satisfaction as the mediating variable, better self-reported health status and satisfactory self-reported financial status via self-esteem as the mediating variable, are crucial predictors of quality of life. This model explains 64.2% of the variance in quality of life from a subset of the predictor variables.     

Women and retirement planning: towards the "feminization of poverty" in an aging Hong Kong

Hong Kong's population is aging but retirement research is largely missing from the research agenda in Hong Kong. This study, based on a telephone survey of 1,078 respondents, examines middle-aged adult's retirement planning activities in Hong Kong. The findings show men are more likely to be involved in financial planning, while women are more likely to take part in some forms of health, living arrangement and psychological planning for retirement. Further, there are age, education and income differences in the various forms of retirement planning activities within genders. Women are living longer; because of their lack of financial retirement planning, they are prime candidates for poverty. The discussion concludes with policy implications related to assisting midlife individuals, in particular women, in planning for retirement.     

Tracking Poverty Reduction in Bhutan: Income Deprivation Alongside Deprivation in Other Sources of Happiness

This paper analyses poverty reduction in Bhutan between two points in time—2003 and 2007—from a multidimensional perspective. The measures estimated include consumption expenditure as well as other indicators which are directly (when possible) or indirectly associated to valuable functionings, namely, health, education, access to electricity, safe water, improved sanitation, enough room per person in dwelling, access to roads and land ownership. Interestingly, most of these indicators have been identified as sources of happiness in the 2007 Gross National Happiness Survey. Twelve different measures are estimated with a variety of values for the different parameters involved for robustness analysis. Also, estimates are bootstrapped creating 95 % confidence intervals. We find that over the study period there was an unambiguous reduction in multidimensional poverty regardless of the indicators’ weights, deprivation cutoffs and identification criterion of the poor. This reduction was mainly led by a reduction in the proportion of the poor which was accompanied by a reduction in the intensity of poverty among those who were less intensively poor, although not among those who were more intensively poor. Rather than accomplishing this poverty reduction by improving achievements in one or two indicators, there were significant reductions in several deprivations, especially in access to roads, electricity, water, sanitation, and education. We also find that when income alone is used to target the poor, inclusion errors are marginal but exclusion errors are sizeable. Despite Bhutan’s significant progress, challenges remain as poverty is still high in rural areas. A multidimensional measure in the lines proposed in this paper can prove useful for monitoring poverty reduction, prioritizing groups and evaluating upon investment.