Multidimensional Poverty in Rural China: Human Capital vs Social Capital

Abstract

Occupational stratification is the comprehensive division and classification of various occupations undertaken by members of society according to specific standards and methods. Based on China Family Panel Studies data, we use the Alkire–Foster method to calculate the rural multidimensional poverty index and empirically examine the impact of human capital, social capital, and occupational stratification on rural multidimensional poverty reduction. The results show that the improvement of human capital and social capital can affect the occupational stratification of rural household members, thereby promoting the growth of household income and reducing multidimensional poverty in the household; occupational stratification is an intermediator in the poverty reduction effect of human capital and social capital; compared to social capital, human capital has a more substantial impact on occupational stratification and rural multidimensional poverty; human capital has a long-term dynamic impact on household multidimensional poverty. On the other hand, social capital has a short-term impact on household multidimensional poverty. At the same time, occupational stratification has a long-term dynamic impact on household multidimensional poverty and is also a long-term poverty reduction mechanism. We delve into the long-term mechanisms for addressing multidimensional poverty through the lens of occupational stratification. Furthermore, we compare the contributions of social and human capital to occupational stratification and the reduction of multidimensional poverty in Chinese rural areas. This analysis enriches the existing literature on poverty studies.