Child income poverty in China from 2005 to 2015: The application and decomposition of the FGT indexes

Abstract

This study analyzed child income poverty in China from 2005 to 2015 using data obtained from the Chinese General Social Survey. Building on the Foster–Greer–Thorbecke (FGT) methodology, this study estimated the headcount, poverty gap and poverty severity indexes of all children and the poverty gap of poor children. Subgroup decomposition, growth-redistribution decomposition of poverty changes and pro-poor growth measurements were conducted. The results show that the overall poverty level among children was high despite a decreasing trend, and poor children's relative economic status worsened, especially in rural areas; there were large disparities among different groups of children by urban/rural status, ethnicity and hukou. Rural children contributed more to the overall poverty level and poverty changes than urban children. The growth among children is not relatively pro-poor but only absolutely pro-poor, increasing the inequality and finally offsetting the effect of growth on reducing poverty to some extent.