Abstract
Despite significant improvements in education and a decline in the percentage of immigrants in elderly population, the poverty risk in old age and the actual number of impoverished elders in Hong Kong have both increased significantly over the past two decades. This study assesses the changing rates of elderly poverty in Hong Kong over the last 20 years and, by means of decomposition analysis, identifies the factors shaping their evolution. The analysis is based on the 5 % microdata samples from the 1991, 2001, and 2011 censuses covering Hong Kong residents aged 65 and above. The results show that the rate of poverty among older adults increased from 27.7 % in 1991 to 38.7 % in 2001, and then to 41.4 % in 2011. The increase was largely caused by a significant decline in the number of earners in the households with older adults, which offset the poverty-reducing effects of education and the percentage decrease of immigrants.
Similar content being viewed by others
References
Alba, R., & Nee, V. (1997). Rethinking assimilation theory for a new era of immigration. International Migration Review, 31(4), 826–874.
Becker, G. S. (1962). Investment in human capital: A theoretical analysis. Journal of Political Economy, 70(5), 9–49.
Becker, G. S. (1998). Human capital and poverty. Religion & Liberty, 8(1), 5–7.
Becker, G. S. (2007). Health as human capital: Synthesis and extensions. Oxford Economic Papers-New Series, 59(3), 379–410.
Blinder, A. S. (1973). Wage discrimination: Reduced form and structural variables. Journal of Human Resources, 8, 436–455.
Boskin, M. J., & Shoven, J. B. (1988). Poverty among the elderly: Where are the holes in the safety net? In Z. Bodie, J. B. Shoven, & D. A. Wise (Eds.), Pensions in the US economy (pp. 115–138). Chicago: University of Chicago Press.
Census and Statistics Department. (1992). 1991 Population census main report–Volume 1. Hong Kong: Census and Statistics Department.
Census and Statistics Department. (2002a). 2001 Population census main report—Volume 1. Hong Kong: Census and Statistics Department.
Census and Statistics Department. (2002b). 2001 Population census thematic report: Older persons. Hong Kong: Census and Statistics Department.
Census and Statistics Department. (2012). 2011 Population census main report–Volume 1 (Vol. 1). Hong Kong: Census and Statistics Department.
Census and Statistics Department. (2013). 2011 Population census thematic report: Older persons. Hong Kong: Census and Statistics Department.
Chiu, S. W. K., & Lui, T. L. (2004). Testing the global city-social polarisation thesis: Hong Kong since the 1990s. Urban Studies, 41(10), 1863–1888.
Chou, K. L. (2010). Number of children and upstream intergenerational financial transfers: Evidence from Hong Kong. Journal of Gerontology: Social Sciences, 65, 227–235.
Chou, K. L., Cheung, K. C. K., Lau, M. K. W., & Sin, T. C. H. (2014). Trends in child poverty in Hong Kong immigrant families. Social Indicators Research, 117, 811–825.
Chou, K. L., & Chow, N. W. S. (2005). Income inequality among older adults in Hong Kong: An analysis of change from 1981 to 2001. Journal of Applied Gerontology, 24(5), 388–403.
Chou, K. L., Chow, N. W. S., & Chi, I. (2004). Preventing economic hardship among Hong Kong Chinese elderly. Journal of Aging and Social Policy, 16, 79–97.
Crowley, M., Lichter, D. T., & Qian, Z. (2006). Beyond gateway cities: Economic restructuring and poverty among Mexican immigrant families and children. Family Relations, 55(3), 345–360.
Dittmer, L., & Liu, G. (2006). China’s deep reform: Domestic politics in transition. Lanham: Rowman & Littlefield.
Dodge, H. H. (1995). Movements out of poverty among elderly widows. Journals of Gerontology Series B-Psychological Sciences and Social Sciences, 50(4), S240–S249.
Fairlie, R. W. (2005). An extension of the Blinder–Oaxaca decomposition technique to logit and probit models. Journal of Economic and Social Measurement, 30(4), 305–316.
Fan, C. S., & Cheung, K. Y. (2004). Trade and wage inequality: The Hong Kong case. Economic Review, 9(2), 131–142.
Government of Hong Kong Special Administration Region (2014). Mandatory provident fund. Resource document. Government of Hong Kong Special Administration Region. http://www.gov.hk/en/about/abouthk/factsheets/docs/mpf.pdf. Accessed 11 June 2015.
Haveman, R. (2009). What does it mean to be poor in a rich society ? Focus, 26(2), 81–86.
Lam, K. C., & Liu, P. W. (2011). Increasing dispersion of skills and rising earnings inequality. Journal of Comparative Economics, 39(1), 82–91.
Lee, K. M., & Wong, H. (2004). Marginalized workers in postindustrial Hong Kong. Journal of Comparative Asian Development, 3(2), 249–280.
Lee, K. M., Wong, H., & Law, K. Y. (2007). Social polarisation and poverty in the global city: The case of Hong Kong. China Report, 43(1), 1–30.
Lichter, D. T., Qian, Z., & Crowley, M. (2005). Child poverty among racial minorities and immigrants: Explaining trends and differentials. Social Science Quarterly, 86(s1), 1037–1059.
Lokshin, M., & Mroz, T. (2003). Gender and poverty: A life cycle approach to the analysis of the differences in gender outcomes. Policy research working papers. The World Bank Group. http://elibrary.worldbank.org/doi/pdf/10.1596/1813-9450-3153.
Mandatory Provident Fund Schemes Authority. (2015). MPF schemes statistical digest (March 2015). Hong Kong: Mandatory Provident Fund Schemes Authority.
Oaxaca, R. (1973). Male-female wage differentials in urban labor markets. International Economic Review, 14, 693–709.
OECD (2014). Terms of OECD project on the distribution of household incomes. http://www.oecd.org/els/soc/IDD-ToR.pdf .
Oxfam (2010). Research report on the living and health conditions of poor elderly not on comprehensive social security assistance and their attitudes towards social security. Resource document. Oxfam Hong Kong. http://www.oxfam.org.hk/content/98/content_8809en.pdf. Accessed 11 June 2015.
Pandey, M. K. (2012). Poverty and disability among Indian elderly: Evidence from household survey. Journal of Disability Policy Studies, 23(1), 39–49.
Phua, V. C., McNally, J. W., & Park, K. S. (2007). Poverty among elderly Asian Americans in the twenty-first century. Journal of Poverty, 11(2), 73–92.
Rupp, K., Strang, A., & Davies, P. (2003). Poverty among elderly women: Assessing SSI options to strengthen social security reform. Journals of Gerontology Series B-Psychological Sciences and Social Sciences, 58B(6), S359–S368.
Sassen, S. (2001). The global city : New York, London, Tokyo. Princeton, NJ: Princeton University Press.
Smeeding, T., & Saunders, P. (1998). How do the elderly in Taiwan fare cross-nationally? Evidence from the Luxembourg Income Study (LIS) Project. In Luxembourg income study working paper No.183. Syracuse, NY: Center for Policy Research, Syracuse University.
Smeeding, T. M., & Williamson, J. (2001). Income maintenance in old age: what can be learned from cross-national comparisons. In Luxembourg income study working paper no. 263. Syracuse, NY: Center for Policy Research, Syracuse University.
Tai, T., & Treas, J. (2009). Does household composition explain welfare regime poverty risks for older adults and other household members? Journals of Gerontology: Social Sciences, 64B(6), 777–787.
The Hong Kong Council of Social Service. (2004). Growing seriousness in poverty and income disparity. Hong Kong: The Hong Kong Council of Social Service.
The Hong Kong Council of Social Service (2013). Summary of statistics on poverty 2012 and proposal on low income supplement. http://www.hkcss.org.hk/uploadfileMgnt/0_2013822154450.pdf.
van Hook, J., Brown, S. L., & Kwenda, M. N. (2004). A decomposition of trends in poverty among children of immigrants. Demography, 41(4), 649–670.
Waehrer, K., & Crystal, S. (1995). The impact of coresidence on economic well-being of elderly widows. Journals of Gerontology: Social Sciences, 50B, S250–S258.
World Bank (2008). The World Bank pension conceptual framework. http://documents.worldbank.org/curated/en/2008/09/9898950/world-bank-pension-conceptual-framework.
Zaidi, A. (2012). Poverty and income of older people in OECD countries. doi:10.2139/ssrn.1992492.
Zhang, Z. N., & Wu, X. G. (2011). Social change, cohort quality and economic adaptation of Chinese immigrants in Hong Kong, 1991–2006. Asian and Pacific Migration Journal, 20(1), 1–29.
Zimmer, Z. (2008). Poverty, wealth inequality and health among older adults in rural Cambodia. Social Science and Medicine, 66, 57–71.
Acknowledgments
This work was funded by the Research Grant Council Strategic Public Policy Research Scheme (HKIEd 7001-SPPR-11) and the Humanities and Social Sciences Prestigious Fellowship Scheme (38600214).
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Lee, SY., Chou, KL. Trends in Elderly Poverty in Hong Kong: A Decomposition Analysis. Soc Indic Res 129, 551–564 (2016). https://doi.org/10.1007/s11205-015-1120-5
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11205-015-1120-5