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Can a subjective poverty line be applied to China? Assessing poverty among urban residents in 1999

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  • Björn Gustafsson
  • Li Shi
  • Hiroshi Sato

    (Department of Economics, Hitotsubashi University, Tokyo, Japan)

Abstract

For the first time, subjective poverty line methodology is applied to China. The data refer to 12 cities for the year 1999. A major conclusion is that poverty counts, based on the subjective poverty line, is surprisingly close to those obtained when applying the methodology used when providing official estimates on poverty in urban China. However, the opinions of the general public can differ considerably across cities. Applying the poverty line we find substantial variation across cities in the extent of poverty. Poverty status in urban China is very much related to education level of the household, to life cycle, as well as to labour market status. Copyright © 2004 John Wiley & Sons, Ltd.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 16 (2004)
Issue (Month): 8 ()
Pages: 1089-1107

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Handle: RePEc:wly:jintdv:v:16:y:2004:i:8:p:1089-1107

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Web page: http://www3.interscience.wiley.com/journal/5102/home

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  1. Khan, Azizur Rahman & Riskin, Carl, 2001. "Inequality and Poverty in China in the Age of Globalization," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780195136494, October.
  2. Ravallion, Martin & Datt, Gaurav & van de Walle, Dominique, 1991. "Quantifying Absolute Poverty in the Developing World," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 37(4), pages 345-61, December.
  3. Colasanto , D. & Gaag, J. van der & Kapteyn, A.J., 1984. "Two subjective definitions of poverty: Results from the Wisconsin basic needs study," Open Access publications from Tilburg University urn:nbn:nl:ui:12-364721, Tilburg University.
  4. Gibson, John & Huang, Jikun & Rozelle, Scott, 2001. "Improving Estimates Of Inequality And Poverty From Urban China'S Household Income And Expenditure Survey," Working Papers, University of California, Davis, Department of Agricultural and Resource Economics 11989, University of California, Davis, Department of Agricultural and Resource Economics.
  5. Goedhart, T. & Halberstadt, V. & Praag, B.M.S. van & Kapteyn, A.J., 1977. "The poverty line: Concept and measurement," Open Access publications from Tilburg University urn:nbn:nl:ui:12-361898, Tilburg University.
  6. Arie Kapteyn & Peter Kooreman & Rob Willemse, 1988. "Some Methodological Issues in the Implementation of Subjective Poverty Definitions," Journal of Human Resources, University of Wisconsin Press, vol. 23(2), pages 222-242.
  7. Park, Albert & Wang, Sangui, 2001. "China's poverty statistics," China Economic Review, Elsevier, Elsevier, vol. 12(4), pages 384-398.
  8. Fang, Cheng & Zhang, Xiaobo & Fan, Shenggen, 2002. "Emergence of urban poverty and inequality in China: evidence from household survey," China Economic Review, Elsevier, Elsevier, vol. 13(4), pages 430-443, December.
  9. John Knight & Li Shi, 2006. "Three Poverties in Urban China," Review of Development Economics, Wiley Blackwell, Wiley Blackwell, vol. 10(3), pages 367-387, 08.
  10. Knight, John & Song, Lina, 1999. "The Rural-Urban Divide: Economic Disparities and Interactions in China," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198293309, October.
  11. 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.
  12. Kilpatrick, Robert W, 1973. "The Income Elasticity of the Poverty Line," The Review of Economics and Statistics, MIT Press, vol. 55(3), pages 327-32, August.
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Cited by:
  1. Jehu-Appiah, Caroline & Aryeetey, Genevieve & Spaan, Ernst & Agyepong, Irene & Baltussen, Rob, 2010. "Efficiency, equity and feasibility of strategies to identify the poor: An application to premium exemptions under National Health Insurance in Ghana," Health Policy, Elsevier, Elsevier, vol. 95(2-3), pages 166-173, May.
  2. Glauben, Thomas & Herzfeld, Thomas & Rozelle, Scott & Wang, Xiaobing, 2012. "Persistent Poverty in Rural China: Where, Why, and How to Escape?," World Development, Elsevier, Elsevier, vol. 40(4), pages 784-795.
  3. Zhang, Yin & Wan, Guanghua, 2006. "The Impacts of Growth and Inequality on Rural Poverty in China," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) RP2006/94, World Institute for Development Economic Research (UNU-WIDER).
  4. Quheng Deng & Bjorn Gustafsson, 2011. "A New Episode of Increased Urban Income Inequality in China," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers, University of Western Ontario, CIBC Centre for Human Capital and Productivity 201116, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  5. Thesia I. Garner & Kathleen Short, 2005. "Economic Well-Being Based on Income, Consumer Expenditures and Personal Assessments of Minimal Needs," Working Papers, U.S. Bureau of Labor Statistics 381, U.S. Bureau of Labor Statistics.
  6. John Knight & Ramani Gunatilaka, 2009. "Income, Aspirations and the Hedonic Treadmill in a Poor Society," Economics Series Working Papers, University of Oxford, Department of Economics 468, University of Oxford, Department of Economics.
  7. Meng, Xin & Gregory, Robert & Wang, Youjuan, 2005. "Poverty, inequality, and growth in urban China, 1986-2000," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 710-729, December.
  8. Ravallion, Martin, 2012. "Poor, or just feeling poor ? on using subjective data in measuring poverty," Policy Research Working Paper Series 5968, The World Bank.

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