Hong Kong Poverty Situation

1 Hong KongPoverty SituationReport 2 O 2 OHong Kong Poverty Situation Report 2O2O Government of the Hong Kong Special Administrative RegionDesigned by the Information Services DepartmentGovernment of the Hong Kong Special Administrative Region Hong KongPoverty SituationReport 2O2OO ce of theGovernment EconomistFinancial Secretary s O ceCensus and Statistics DepartmentNovember 2021 Government of the Hong KongSpecial Administrative Region Hong Kong Poverty Situation Report 2020 Table of Contents i Table of Contents Page Table of Contents i List of Figures iii List of Tables vi Executive Summary vii Chapter 1: Introduction 1 Guiding Principles of the Government in Regard to Poverty alleviation 1 The Poverty Line and the Poverty Situation Report 1 Government s Efforts in Poverty alleviation 3 Related Studies under the Poverty Line Framework 9 Structure of Poverty Situation Report 10 Chapter 2.

2 Poverty Situation and Its Trend from 2009 to 2020 11 Major Factors Affecting Poverty Statistics 11 Household Income Distribution 17 The Poverty Line 20 Overall Poverty Situation and Its Trend 21 Poverty Situation of Households and Their Population by Socio-economic Characteristic 30 Key Observations 57 Box Child Poverty Situation 36 Box Youth Poverty Situation 41 Box Support to Poor Households through Direct Payment In-kind for Expenses Provided by Non-household Members 47 Box Poverty Situation of the Elderly 51 Chapter 3.

3 Further Analysis of the 2020 Poverty Situation 60 Poverty Situation by Selected Household Group 61 Impacts of Economic Recession on the Poverty Situations of Working Households and Unemployed Households in 2020 75 Poverty Situation by District 81 Key Observations 84 A Synopsis of Poverty Situation after Intervention of All Selected Measures by Selected Household Group 91 A Synopsis of Poverty Situation after Intervention of All Selected Measures by District Council District 106 Box Poverty Situation of Single-parent Households and New-arrival Households 66 Box The Situation of At-risk-of- Poverty Households 86 Hong Kong Poverty Situation Report 2020 Table of Contents ii Page Chapter 4.

4 Policy Implications 124 Appendices 1 Poverty Line and Its Analytical Framework 130 2 Quantitative Indicators of the Poverty Line 138 3 Policy Intervention - Estimation and Limitations 139 4 In-kind Transfer from Provision of Public Rental Housing - Estimation and Limitations 148 5 Income-poor, Owning Property of Certain Value Elders 151 6 Poverty Situation of Working Persons with Post-secondary Educational Attainment 155 7 Statistical Appendix 160 Glossary 230 Abbreviations 237 References 238 Hong Kong Poverty Situation Report 2020 List of Figures iii List of Figures Page Figure Enhanced main analytical framework of the Poverty line 3 Figure Labour market Situation and household income 12 Figure Recurrent government expenditure on social welfare.

5 2009/10-2021/22 14 Figure Estimated average welfare transfer of all selected measures per household, 2009-2020 15 Figure Population figures by age group and number of households with elders, 2009-2020 16 Figure Average household size of overall households and the proportion of small households, 2009-2020 17 Figure Key statistics of pre-intervention (purely theoretical assumption) household income 18 Figure Pre-intervention (purely theoretical assumption) household income distribution by economic characteristic of households, 2019-2020 19 Figure Pre- and post-intervention household income distribution, 2020 20 Figure Poverty lines by household size, 2009-2020 21 Figure Poor population and Poverty rate, 2009-2020 23 Figure Poverty alleviation effectiveness of all selected measures, 2009-2020 24 Figure Annual total Poverty gaps, 2009-2020 24 Figure Poverty alleviation effectiveness of selected measures.

6 2019-2020 27 Figure Decomposition of changes in the Poverty rate, 2009-2020 30 Figure Poor population, Poverty rate and Poverty alleviation effectiveness by economic characteristic of households, 2009-2020 31 Figure Poor population, Poverty rate and Poverty alleviation effectiveness by age, 2009-2020 33 Figure Poor population, Poverty rate and Poverty alleviation effectiveness by gender, 2009-2020 34 Figure Poor population, Poverty rate and Poverty alleviation effectiveness by age of household head, 2009-2020 35 Figure Poor population and Poverty rate of children, 2009-2020 36 Figure Proportion of pre-intervention (purely theoretical assumption)

7 Poor children benefitting from selected measures, 2020 37 Figure Poverty alleviation effectiveness of selected measures on children, 2019-2020 38 Figure Selected characteristics of poor households with children, 2020 39 Figure Poor population and Poverty rate of the youth, 2009-2020 41 Hong Kong Poverty Situation Report 2020 List of Figures iv Page Figure Proportion of pre-intervention (purely theoretical assumption) poor youths benefitting from selected measures, 2020 42 Figure Poverty alleviation effectiveness of selected measures on youths, 2019-2020 43 Figure Selected household characteristics of poor youths, 2020 43 Figure Poor youths by age and economic activity status, 2020 44 Figure Monthly amount of DPIK for poor households receiving DPIK, 2020 48 Figure Poor population and Poverty rate of the elderly, 2009-2020 52 Figure Elders by social security scheme coverage.

8 2015-2020 53 Figure Poverty alleviation effectiveness of selected measures on elders, 2019-2020 54 Figure Poor elders by age, 2020 55 Figure Selected household groups by socio-economic and housing characteristic and age of household head under the analytical framework 60 Figure Poverty rate, poor population and Poverty alleviation effectiveness by selected socio-economic group, 2020 63 Figure Annual changes in the pre- and post- intervention Poverty rates by selected socio-economic group, 2020 65 Figure Poor population and Poverty rates of single-parent households and new-arrival households, 2009-2020 66 Figure Proportion of pre-intervention (purely theoretical assumption)

9 Single-parent and new-arrival poor households benefitting from selected measures, 2020 67 Figure Poverty alleviation effectiveness of selected measures on single-parent and new-arrival households, 2020 68 Figure Selected characteristics of single-parent and new-arrival poor households, 2020 68 Figure Poverty rate, poor population and Poverty alleviation effectiveness by housing type, 2020 71 Figure Selected socio-economic characteristics of poor households by housing type, 2020 73 Figure Poverty rate, poor population and Poverty alleviation effectiveness by age of household head, 2020 74 Figure Number of economically active households and proportion of working households by number of full-time working members 76 Figure Pre-intervention (purely theoretical assumption)

10 Poverty rate and increase in poor population by economic characteristic of households, 2020 77 Figure Annual changes in the number of pre-intervention (purely theoretical assumption) unemploy