Impact of Income, Deprivation and Social Exclusion on Subjective Poverty: A Structural Equation Model of Multidimensional Poverty in Hong Kong

Multidimensional poverty in urban cities has become an increasing global concern. Income poverty, deprivation, social exclusion and subjective poverty have been commonly used as measurements for poverty. However, the path relationship among these various dimensions has been ignored. This study aims to fill this research gap by focusing on the impact on subjective poverty. A random sample survey of 1979 adult participants in Hong Kong was used for the analysis. Structural equation modelling was applied in studying the path relationship among the monetary, material, social and subjective dimensions of poverty. Subjective poverty was predicted through a mediated model, with deprivation and social exclusion as the mediators. The result of this structural equation modelling indicated that the impact of income on subjective poverty was partially mediated by the material and social dimensions of poverty. In an age group comparison analysis, deprivation showed a larger influence on the elderly group, whilst social exclusion had a larger mediating effect on the younger group. The implication of these results and limitations are discussed.