Income, deprivation, and social exclusion: toward a comprehensive poverty measurement in Hong Kong

Abstract

ABSTRACT Multidimensional measurements have become the preferred means to determine levels of poverty in research and policy practice because unidimensional measurements cannot capture the full picture of poverty. This study combines income, deprivation, and social exclusion measures and proposes a comprehensive poverty measurement within the multidimensional framework. Using data from a representative survey in Hong Kong, we applied the comprehensive poverty measurement to an affluent Asian society. We used the Poisson-based framework to analyse the poverty threshold and the Alkire and Foster multidimensional poverty index (MPI). According to the comprehensive poverty measurement, Hong Kong’s poverty rate was 6.1%, and MPI was 0.047. Social exclusion contributed the most to poverty, and individuals who differed from the typical profile had distinct disadvantages in all three dimensions of comprehensive poverty. Multivariate regression analysis further revealed that individuals who were immigrants, aged 65 or over, had low levels of education and poor health, and received social assistance were more likely to be comprehensively poor. Through revealing the nuanced needs of the poor population, the comprehensive measurement sheds new light on multidimensional poverty and provides novel policy implications for poverty alleviation.