Dynamic Decomposition of the Urban Poverty Variation in Beijing

Abstract

Poverty is a long-standing problem with the development of human society. We study on the dynamic effect of the urban poverty in Beijing in order to recognize the status of the poverty in Beijing, make further to eliminate poverty, and eventually to achieve the purpose of common prosperity. In this paper, we study on the dynamic effects of the urban poverty in Beijing, caused by the poverty line change and income growth respectively, and draw some conclusions. Introduction The poverty is one of the most serious challenges in China. After the eighteenth Congress of the Communist Party of China, the problem of poverty, become the priority among priorities in the reform of income distribution. Beijing, as China's political economic and cultural center, in 2012, its urban residents has reached 17840000 people, occupying 86% of the total population in Beijing. Therefore, it becomes particularly important to measure the poverty line and study on the poverty change in Beijing urban. Measurement of poverty line Due to some historical and political reasons, the poverty standard has a bigger gap between the China and the world. So, in this paper we get a new poverty line based on the “Martin method”. The Martin poverty line includes lower and upper bounds. Using the regression model, we can calculate the non food spending (expressed as “NF”) of the people whose per capita disposable income just can reach the food poverty line (expressed as “ZF”). Then following the equation: ZL=ZF+NF, we can get the lower bound of the poverty line (expressed as “ZL”). Meanwhile, we can also calculate the non food spending (expressed as “N * F * ”) of the people whose food expenditure exactly equal to the food poverty line. Then following the equation: ZU=ZF+ N * F * , we can get the upper bound of the poverty line (expressed as “ZU”). Fig. 1 is the sketch diagram of the poverty line based on the “Martin method”. Fig. 1 Sketch Diagram of Martin Poverty Line Based on the data provided by the National Bureau, we can establish the following regression model: 2014 International Conference on Social Science (ICSS 2014) © 2014. The authors Published by Atlantis Press 166 F = 0.2566Y+1006.9 (1) Where, Y is the per capita disposable income of the 20% urban low-income households in Beijing, F is the corresponding per capita food consumption expenditure In this paper, for simplicity, the food poverty line equals to the per capita food consumption expenditure of the 20% urban low income households in Beijing. So, according to the “Martin method”, we can calculate the lower and upper bounds of the poverty line in Beijing, shown in the following table. Table 1 The Lower and Upper Bounds of the Poverty Line in Beijing [Unit: Yuan] Year ZF ZL ZU Year ZF ZL ZU 1998 2297.6 2998.7 5030.