Measurement and determinants of multidimensional urban poverty: Evidence from Shandong Province, China

Abstract

China eliminated rural poverty under current poverty standards in 2020. However, compared with rural poverty, urban poverty in China has been somewhat neglected. This paper aims to discover the changes and determinants of multidimensional urban poverty in Shandong Province, a representative province in Eastern China. Using a nationally representative panel dataset, the China Family Panel Studies, and the Dual Cutoff method, this study creates a multidimensional poverty index with four dimensions and 11 indicators to measure urban poverty in Shandong Province. This paper discovers that while the incidence of multidimensional urban poverty in Shandong Province decreased from 47.62% in 2010 to 36.45% in 2018, the intensity of multidimensional poverty only decreased from 41.27% to 37.25%, which indicates the inadequacy of urban anti-poverty efforts in Shandong Province. This paper also uses logistic regression to identify the determinants of multidimensional urban poverty. The findings suggest that income, health, drinking water, and durable goods are the main determinants of multidimensional urban poverty in Shandong Province. Based on these findings, this study provides targeted recommendations for future urban anti-poverty policies in Shandong Province.

Fig 1. The framework of the capability approach.

Functionings denote the achievements valued by individuals. Capabilities refer to the freedom and opportunities for individuals to achieve certain functionings. Resources serve as the means to achieve valued ends. These resources are transformed into functionings through capabilities. The arrows depict the direction of transformation.

Fig 2. Robustness to the cutoff k for different groups.

This study employed a dominance analysis to test the robustness of the poverty cutoff. Samples were divided into four random groups. The x-axis represents different k values, while the y-axis represents M₀ values for different groups. The line graph confirms M₀ stability across almost all k values, validating the robustness of the poverty cutoff.