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.