Multidimensional Relative Poverty in China: Identification and Decomposition

Abstract

This paper aims to study the change and decomposition of multidimensional relative poverty in China. The data we use are from the China Health and Nutrition Survey (CHNS). The data cover 12 provinces in China and span a long period, from reform to precise poverty alleviation. The results show that the multidimensional relative poverty index presents a change pattern of “gradual rise (1991–2004)-decline (2004–2011)-rise again (after 2011)”. The dimensions of education, income, and employment contribute more to multidimensional relative poverty, followed by health and living standards. Multidimensional relative poverty is more severe in rural areas, central and western regions, women, and the elderly. The “incidence of poverty effect” is the main factor in the changes in multidimensional relative poverty, and its contribution is higher than the “intensity of poverty effect”.