Reducing Multidimensional Poverty of Elderly: The Role of the New Rural Pension Scheme in China
Table 1
Construction of the multidimensional poverty indicator.
Dimension
Indicator
Cut-off value
Standard of living
Drinking water
Nontap/bottled water/pure water/filtered water for cooking = 1; else = 0
Toilets
Do not use indoor or outdoor flush toilets or dry toilets = 1; else = 0
Cooking fuel
Use firewood as the main living fuel = 1; else = 0
Housing
Housing difficulties = 1; else = 0
Electricity
No power or frequent power outages = 1; else = 0
Durable goods
No TV, washing machine, refrigerator (freezer), computer, mobile phone, electric bicycle, motorcycle, car, any durable goods = 1; else = 0
Health
Medical insurance
No medical insurance = 1; else = 0
Chronic diseases
Have a chronic disease = 1; else = 0
Social inclusion
Relationship with neighborhood
Have a bad relationship with neighbors = 1; else = 0
Social status
Self-valued local social status is very low (less than 3 points for assignments) = 1; else = 0
Subjective well-being
Future confidence
Have no confidence in your future (assignment is less than 3 points, excluding 3 points) = 1; else = 0
Life satisfaction
Dissatisfied with your own life (less than 3 points, not including 3 points) = 1; else = 0
Data source: CFPS 2012, 2014, 2016. Note: (1) CFPS questionnaire asks respondents how close they are to their neighbors, their social status, future confidence, and about their life satisfaction. The survey is self-scoring, a score of 0 represents being very unharmonious/very low/very unconfident/very dissatisfied, and 5 represents being very harmonious/very high/very confident/very satisfied. (2) The 2016 questionnaire only asked about the three quality of life indicators of drinking water, fuel, and durable consumer goods. This paper defines at least one of the indicators of poverty as a significant reduction in quality of life. (3) 2016 questionnaire did not ask about specific durable consumer products but asked about the total value of durable consumer goods. This article defines the total value of 0 as the poverty index.
