IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v150y2020i1d10.1007_s11205-020-02303-0.html
   My bibliography  Save this article

Poverty and Subjective Poverty in Rural China

Author

Listed:
  • Hanjie Wang

    (University of Goettingen)

  • Qiran Zhao

    (China Agricultural University)

  • Yunli Bai

    (Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences)

  • Linxiu Zhang

    (Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences)

  • Xiaohua Yu

    (University of Goettingen)

Abstract

China is undergoing a campaign which is called “The Targeted Poverty Alleviation Policy” to eradicate extreme poverty from rural China until 2020. Though poverty in rural China has been studied intensively in different objective dimensions, little attention has been paid to poverty line settings and subjective poverty, which are hinged to the policy effects. In order to fill in the research gap, this study employs a nationally representative survey of rural households in 2016, to measure subjective poverty in rural China, and analyze the determinants as well. Our results indicate that the mean subjective poverty line of the rural households is 8297 yuan per capita, which is far higher than the national poverty line (2800 yuan). Statistically, 29% of the surveyed rural households who are not objectively poor feel subjectively poor. The objective poverty line cannot fully reflect the subjective poverty perception. Thus, how to reduce the subjective poverty perception could be a major policy agenda in rural China after 2020, when extreme poverty is no longer a problem.

Suggested Citation

  • Hanjie Wang & Qiran Zhao & Yunli Bai & Linxiu Zhang & Xiaohua Yu, 2020. "Poverty and Subjective Poverty in Rural China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(1), pages 219-242, July.
  • Handle: RePEc:spr:soinre:v:150:y:2020:i:1:d:10.1007_s11205-020-02303-0
    DOI: 10.1007/s11205-020-02303-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-020-02303-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11205-020-02303-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alkire, Sabina & Seth, Suman, 2015. "Multidimensional Poverty Reduction in India between 1999 and 2006: Where and How?," World Development, Elsevier, vol. 72(C), pages 93-108.
    2. Robert C. Allen, 2017. "Absolute Poverty: When Necessity Displaces Desire," American Economic Review, American Economic Association, vol. 107(12), pages 3690-3721, December.
    3. Betsey Stevenson & Justin Wolfers, 2013. "Subjective Well-Being and Income: Is There Any Evidence of Satiation?," American Economic Review, American Economic Association, vol. 103(3), pages 598-604, May.
    4. Xi Chen, 2014. "Gift-Giving and Network Structure in Rural China: Utilizing Long-Term Spontaneous Gift Records," PLOS ONE, Public Library of Science, vol. 9(8), pages 1-14, August.
    5. repec:pri:rpdevs:deaton_price_indexes_inequality_and_the_measurement_of_world_poverty_aer. is not listed on IDEAS
    6. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
    7. Angus Deaton, 2010. "Price Indexes, Inequality, and the Measurement of World Poverty," American Economic Review, American Economic Association, vol. 100(1), pages 5-34, March.
    8. Angus Deaton & Olivier Dupriez, 2011. "Purchasing Power Parity Exchange Rates for the Global Poor," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 137-166, April.
    9. Yu, Xiaohua & Abler, David, 2016. "Matching food with mouths: A statistical explanation to the abnormal decline of per capita food consumption in rural China," Food Policy, Elsevier, vol. 63(C), pages 36-43.
    10. Angus Deaton & Alan Heston, 2010. "Understanding PPPs and PPP-Based National Accounts," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(4), pages 1-35, October.
    11. John A. Bishop & Feijun Luo & Xi Pan, 2006. "Economic Transition And Subjective Poverty In Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(4), pages 625-641, December.
    12. Kim, Jong Min & Jun, Mina & Kim, Chung K., 2018. "The Effects of Culture on Consumers' Consumption and Generation of Online Reviews," Journal of Interactive Marketing, Elsevier, vol. 43(C), pages 134-150.
    13. Danziger, Sheldon, et al, 1984. "The Direct Measurement of Welfare Levels: How Much Does It Cost to Make Ends Meet?," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 500-505, August.
    14. Thesia I. Garner & Kathleen Short, 2005. "Personal Assessments of Minimum Income and Expenses: What Do They Tell Us about 'Minimum Living' Thresholds and Equivalence Scales?," Working Papers 379, U.S. Bureau of Labor Statistics.
    15. Geeta Gandhi Kingdon & John Knight, 2006. "Subjective well-being poverty vs. Income poverty and capabilities poverty?," Journal of Development Studies, Taylor & Francis Journals, vol. 42(7), pages 1199-1224.
    16. Stephan Klasen & Tatyana Krivobokova & Friederike Greb & Rahul Lahoti & Syamsul Hidayat Pasaribu & Manuel Wiesenfarth, 2016. "International income poverty measurement: which way now?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 199-225, June.
    17. Deaton, Angus, 2018. "What do self-reports of wellbeing say about life-cycle theory and policy?," Journal of Public Economics, Elsevier, vol. 162(C), pages 18-25.
    18. Runt Veenhoven, 2002. "Why Social Policy Needs Subjective Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 58(1), pages 33-46, June.
    19. Dorrit Posel & Michael Rogan, 2014. "Measured as Poor Versus Feeling Poor: Comparing Objective and Subjective Poverty Rates in South Africa," WIDER Working Paper Series wp-2014-133, World Institute for Development Economic Research (UNU-WIDER).
    20. Menno Pradhan & Martin Ravallion, 2000. "Measuring Poverty Using Qualitative Perceptions Of Consumption Adequacy," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 462-471, August.
    21. De Zhou & Xiaohua Yu, 2015. "Calorie Elasticities with Income Dynamics: Evidence from the Literature," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(4), pages 575-601.
    22. Diane Colasanto & Arie Kapteyn & Jacques van der Gaag, 1984. "Two Subjective Definitions of Poverty: Results from the Wisconsin Basic Needs Study," Journal of Human Resources, University of Wisconsin Press, vol. 19(1), pages 127-138.
    23. Ravallion, Martin, 2015. "On testing the scale sensitivity of poverty measures," Economics Letters, Elsevier, vol. 137(C), pages 88-90.
    24. Shaojie Zhou & Xiaohua Yu, 2017. "Regional Heterogeneity of Life Satisfaction in Urban China: Evidence from Hierarchical Ordered Logit Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(1), pages 25-45, May.
    25. van Praag, Bernard M S & Spit, Jan S & van de Stadt, Huib, 1982. "A Comparison between the Food Ratio Poverty Line and the Leyden Poverty Line," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 691-694, November.
    26. Foster, James E, 1998. "Absolute versus Relative Poverty," American Economic Review, American Economic Association, vol. 88(2), pages 335-341, May.
    27. repec:pri:rpdevs:presidential%20address%2017january%202010%20all.pdf is not listed on IDEAS
    28. Robert C. Allen, 2017. "Absolute Poverty: When Necessity Displaces Desire REVISED," Working Papers 20170005, New York University Abu Dhabi, Department of Social Science, revised Jun 2017.
    29. Posel, Dorrit & Rogan, Michael, 2014. "Measured as poor versus feeling poor: Comparing objective and subjective poverty rates in South Africa," WIDER Working Paper Series 133, World Institute for Development Economic Research (UNU-WIDER).
    30. Theo Goedhart & Victor Halberstadt & Arie Kapteyn & Bernard van Praag, 1977. "The Poverty Line: Concept and Measurement," Journal of Human Resources, University of Wisconsin Press, vol. 12(4), pages 503-520.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tomáš Želinský & Martina Mysíková & Thesia I. Garner, 2022. "Trends in Subjective Income Poverty Rates in the European Union," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(5), pages 2493-2516, October.
    2. Chaoxin Jiang & Qiang Ren & Shan Jiang & Lin Wang & Lei Dong & Mingwei Wang, 2021. "Association Between Objective and Subjective Deprivation and Health-Related Quality of Life Among Chinese Adolescents: Hope as a Moderator," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(6), pages 2417-2432, December.
    3. Komatsu, Sho & Suzuki, Aya, 2021. "The Impact of Rural E-Commerce Development on Rural Income and Urban-Rural Income Inequality in China: A Panel Data Analysis," 2021 Conference, August 17-31, 2021, Virtual 315050, International Association of Agricultural Economists.
    4. Rajko Tomaš, 2022. "Measurement of the Concentration of Potential Quality of Life in Local Communities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 79-109, August.
    5. Boou Chen & Chunkai Zhao, 2021. "Poverty reduction in rural China: Does the digital finance matter?," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-27, December.
    6. Zhao, Chunkai & Chen, Boou & Song, Zhiyong, 2024. "School nutritious feeding and cognitive abilities of students in poverty: Evidence from the nutrition improvement program in China," Children and Youth Services Review, Elsevier, vol. 159(C).
    7. Fei Wang & Yuan Zhang & Clem Tisdell & Hong Liu, 2021. "Progress in Reducing the Poverty of Ethnic Minority Groups in China," Social Economics, Policy and Development Working Papers 313747, University of Queensland, School of Economics.
    8. Xia, Fangzhou & Huang, Jing & Zhang, Zhengfeng, 2024. "Government concerns, the benefit cliff, and land use: A comparative study of rural impoverished and marginalised impoverished groups," Land Use Policy, Elsevier, vol. 140(C).
    9. Chen, Shaohua & Ravallion, Martin, 2021. "Reconciling the conflicting narratives on poverty in China," Journal of Development Economics, Elsevier, vol. 153(C).
    10. Xiuli Wang & Barnabas C. Seyler & Ting Chen & Weiyan Jian & Hongqiao Fu & Baofeng Di & Winnie Yip & Jay Pan, 2024. "Disparity in healthcare seeking behaviors between impoverished and non-impoverished populations with implications for healthcare resource optimization," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    11. Suxia Li & Meng Cai, 2024. "Social support and reference group: the dual action mechanism of the social network on subjective poverty," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    12. Shuo Ding, 2023. "Vulnerability to Poverty in Chinese Households with Elderly Members: 2013–2018," Sustainability, MDPI, vol. 15(6), pages 1-30, March.
    13. Zhengjie Zhang & Jiahao Song & Caixia Yan & Dingde Xu & Wei Wang, 2022. "Rural Household Differentiation and Poverty Vulnerability: An Empirical Analysis Based on the Field Survey in Hubei, China," IJERPH, MDPI, vol. 19(8), pages 1-15, April.
    14. Cheng, Zhiming & Tani, Massimiliano & Wang, Haining, 2021. "Energy poverty and entrepreneurship," Energy Economics, Elsevier, vol. 102(C).
    15. Yingfeng Fang & Fen Zhang, 2021. "The Future Path To China’s Poverty Reduction—Dynamic Decomposition Analysis With The Evolution Of China’s Poverty Reduction Policies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 507-538, December.
    16. Liquan Qu & Weidong Xiao & Weidong Gao, 2022. "Do Resettled People Adapt to Their Current Geographical Environment? Evidence from Poverty-Stricken Areas of Northwest Yunnan Province, China," IJERPH, MDPI, vol. 20(1), pages 1-20, December.
    17. Hongzhang Xu & Jamie Pittock & Katherine A. Daniell, 2021. "China: A New Trajectory Prioritizing Rural Rather Than Urban Development?," Land, MDPI, vol. 10(5), pages 1-29, May.
    18. Verónica Amarante & Maira Colacce & Federico Scalese, 2024. "Poverty in Latin America: feelings/perceptions Vs. material conditions," Documentos de Trabajo (working papers) 24-01, Instituto de Economía - IECON.
    19. He, Ling & Tan, Chee-Seng & Pung, Pit-Wan & Hu, Jie & Tang, Hai-Bo & Cheng, Siew-May, 2023. "The role of parental rejection and poverty in the development of prosocial behavior among left-behind adolescents in rural China," Children and Youth Services Review, Elsevier, vol. 155(C).
    20. Chenhong Peng & Yik-Wa Law, 2023. "How Do Consumption Patterns Influence the Discrepancy Between Economic and Subjective Poverty?," Journal of Happiness Studies, Springer, vol. 24(4), pages 1579-1604, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zsoka Koczan, 2022. "Perceptions of economic well‐being in the Western Balkans," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(4), pages 845-867, October.
    2. Tahir Mahmood & Xiaohua Yu & Stephan Klasen, 2019. "Do the Poor Really Feel Poor? Comparing Objective Poverty with Subjective Poverty in Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(2), pages 543-580, April.
    3. Tomáš Želinský & Martina Mysíková & Thesia I. Garner, 2022. "Trends in Subjective Income Poverty Rates in the European Union," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(5), pages 2493-2516, October.
    4. Verónica Amarante & Maira Colacce & Federico Scalese, 2024. "Poverty in Latin America: feelings/perceptions Vs. material conditions," Documentos de Trabajo (working papers) 24-01, Instituto de Economía - IECON.
    5. Zsoka Koczan, 2016. "Being Poor, Feeling Poorer: Inequality, Poverty and Poverty Perceptions in the Western Balkans," IMF Working Papers 2016/031, International Monetary Fund.
    6. Moatsos, Michail, 2020. "Why PPP exchange rates should be avoided in global poverty estimates," EconStor Preprints 218972, ZBW - Leibniz Information Centre for Economics.
    7. Gustafsson, Björn Anders & Yue, Ximing, 2006. "Rural People’s Perception of Poverty in China," IZA Discussion Papers 2486, Institute of Labor Economics (IZA).
    8. Thesia I. Garner & Kathleen Short, 2005. "Economic Well-Being Based on Income, Consumer Expenditures and Personal Assessments of Minimal Needs," Working Papers 381, U.S. Bureau of Labor Statistics.
    9. Martin Ravallion, 2016. "Toward better global poverty measures," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 227-248, June.
    10. Olivier Sterck, 2024. "Poverty Without Poverty Line," CSAE Working Paper Series 2024-07, Centre for the Study of African Economies, University of Oxford.
    11. Siu Ming Chan & Hung Wong, 2020. "Impact of Income, Deprivation and Social Exclusion on Subjective Poverty: A Structural Equation Model of Multidimensional Poverty in Hong Kong," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(3), pages 971-990, December.
    12. Bernard M. S. van Praag & Nico L. van der Sar, 1988. "Household Cost Functions and Equivalence Scales," Journal of Human Resources, University of Wisconsin Press, vol. 23(2), pages 193-210.
    13. John Bishop & Andrew Grodner & Haiyong Liu & Ismael Ahamdanech-Zarco, 2014. "Subjective poverty equivalence scales for Euro Zone countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(2), pages 265-278, June.
    14. Andrea Brandolini & John Micklewright, 2023. "Measuring global poverty," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 6, pages 60-69, Edward Elgar Publishing.
    15. Michail Moatsos & Achillefs Lazopoulos, 2024. "Stress-testing the international poverty line and the official global poverty statistics," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    16. Ravallion, Martin, 2012. "Poor, or just feeling poor ? on using subjective data in measuring poverty," Policy Research Working Paper Series 5968, The World Bank.
    17. Robert C. Allen, 2017. "Absolute Poverty: When Necessity Displaces Desire," American Economic Review, American Economic Association, vol. 107(12), pages 3690-3721, December.
    18. Moatsos, Michail & Lazopoulos, Achillefs, 2021. "Global poverty: A first estimation of its uncertainty," World Development Perspectives, Elsevier, vol. 22(C).
    19. Megbowon Ebenezer Toyin, 2018. "Multidimensional Poverty Analysis of Urban and Rural Households in South Africa," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 63(1), pages 3-19, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:150:y:2020:i:1:d:10.1007_s11205-020-02303-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.