ABSTRACT
Building on previous chapters, this chapter examines the issues of poverty and migration in China. This chapter delves into the core methodological approaches of relative and material deprivation that are used to measure poverty and inequality as proxies of economic wellbeing. Two underlying theoretical constructs are prevalent in their measurement: material versus relative deprivation. This chapter draws attention to how both existing measures of poverty in China and the global standard of poverty based on relative income are insufficient. This chapter then proposes a new measure of poverty based on the cost of living. Applied to the context of Hong Kong, it is shown that the current poverty rate in Hong Kong is potentially understated by nearly half under the relative standard of poverty measurement—a shortfall that is captured in the new cost of living measure proposed. This mismeasurement offers a glaring warning about substantial lapses in current welfare and poverty relief coverage.
