Research On Multidimensional Relative Poverty Of Urban Families In The Context Of Common Prosperity

Common prosperity has been the common ideal of the Chinese people and the goal of Chinese path to modernization.In 2020,China eliminated absolute poverty and took a solid step towards achieving common prosperity for all people.After that,poverty alleviation efforts should focus on addressing the issue of relative poverty,and urban relative poverty will receive more attention.The first step in poverty governance is to identify the poor.After eliminating absolute poverty,it is not reasonable to use only a single income standard or the same poverty line as in rural areas to distinguish the urban poor.Constructing a multidimensional relative poverty indicator system for urban households can accurately identify the urban relative poverty population.In order to carry out targeted governance work on relative poverty,it is also necessary to clarify the influencing factors.The accumulation of wealth is an important economic resource for a family to effectively cope with risk shocks and avoid falling into poverty.Compared to rural families,urban families are faced with more complex financial markets and more financial decisions.To accumulate sufficient family wealth,they must have a certain degree of financial literacy.This article studies the multidimensional relative poverty of urban households in China from the perspective of financial literacy.First,using the tracking data of the China Family Tracking Survey(CFPS)for 2012,2014,2016,and 2018,a multidimensional relative poverty system is constructed to measure the dynamic changes in multidimensional relative poverty of urban households in China.Secondly,based on the data from CFPS in 2014,The probit model was used to empirically test the relationship between financial literacy and multidimensional relative poverty in households.Endogenous analysis,regional heterogeneity analysis,and robustness analysis were conducted.Finally,the mechanism by which financial literacy affects multidimensional relative poverty in urban households was tested.The main conclusions obtained are as follows:In terms of measuring multidimensional relative poverty of urban households:(1)From 2012 to 2018,the multidimensional relative poverty index of urban households continued to decline over time;(2)In the four years,the incidence of relative poverty in the health dimension is the highest,while the incidence of relative poverty in the employment dimension is the lowest;(3)In terms of indicator decomposition,the contribution rates of household per capita annual income and medical insurance indicators to the overall multidimensional relative poverty index are the highest,and the contribution rates of household per capita annual income,self rated health,serious illness status,and chronic disease indicators show an upward trend,indicating that income and health have become the main causes of multidimensional relative poverty among urban households in China;In terms of regional decomposition,the multi-dimensional relative poverty index in the central and western regions is relatively high,while the multi-dimensional relative poverty index in the eastern region has been the lowest in four years;In terms of province decomposition,the multidimensional relative poverty index of provinces with higher levels of economic development such as Fujian and Hebei is not low.In terms of the impact of financial literacy on multi-dimensional relative poverty of urban households: Financial literacy has a significant alleviation effect on multi-dimensional relative poverty of urban households;Financial literacy mainly affects urban households’ multidimensional relative poverty through two mechanisms: investment behavior and borrowing behavior.Based on the above conclusions,this paper proposes policy recommendations:(1)establishing a multidimensional urban relative poverty indicator system at the national level to improve the accuracy of identifying the relative poor population;(2)give full play to the role of social forces and build a multi-dimensional collaborative governance mechanism for urban relative poverty;(3)Strengthen supervision and guide residents to actively participate in the financial market;(4)Adapt measures to local conditions,implement policies based on households,and target urban multidimensional relative poverty.