1. SOSC 103D Social Inequality in HK Lecture 11: Defining Poverty in HK

2. L11: 16.10.06 Development and Poverty What is the relation between development and poverty? What is the nature of poverty in the 1960s; and does it different from those in the 1990s? –1960s: ‘Making Ends Meet’ (D. Faure) Housing conditions –1990s: ‘Disempowerment and empowerment’ (Lui & Wong) Industrial restructuring of the economy Marital and family problems -> single parent families New immigrants from Mainland China

3. L11: 16.10.06 Causes of Poverty Individual side of poverty  Unfortunate group -Chronic illness: losing ability to work -Old age: losing job and lacking family support -Social isolation: e.g. single parents  Unemployment -especially long-term unemployment

4. L11: 16.10.06 Causes of Poverty (cont’) Institutional side of poverty  Structure of employment -One’s class situation in the occupational structure determine the probability of becoming poor. -Income, job security, contract  Social membership -The role of laws and legislations -Social and political changes

5. L11: 16.10.06 How many poor people in HK? The number of cases that receive social assistance

6. L11: 16.10.06 Defining Poverty – Absolute Poverty Standard Approach Specify the minimum or basic subsistence level Estimate the percentage of income spend on food (50%) Example: Hong Kong’s low income families Advantages: Convenient; Straight-forward Disadvantages: Narrow conception of poverty; Static

7. L11: 16.10.06 Relative Standard approach Poverty is defined in relative nature Poverty is measured with reference to the degree of inequality in society Different measures of poverty line: –Median household income of the lowest 20% income group? –The overall median household income? –Hong Kong’s Case (6% or 13% of population live in poverty?)

8. L11: 16.10.06 Relative Standard approach (cont’) Advantages:  Links poverty to income inequality in the society  Poverty means more than receiving welfare (the definition that usually used by governments) Disadvantages:  Difficulties in collecting right income information  Arbitrary measurement  Exaggerates the amount of poverty: ignore the help in kind received by the poor  Underestimates poverty: income is not the sole measurement