Structural Analysis Of Working Poor Based On Household Survey Data In China’s Urban Area

Since the reform and the opening-up policy, China has made remarkable progress in its social and economic development. Along with rapid economic growth, the nominal and real wages of ordinary workers have significantly increased. As a result, the numbers of individuals and families in absolute poverty have been tremendously reduced. However, during the period of transition of China’s labor market, due to the significance of widening wag gap and inequality, the problem of relative poverty has emerged. This thesis focuses on urban working poor which is one of the most important forms of relative poverty. Working poor deeply affected individuals, families and society with negative impacts on workers’attitudes toward their jobs, their productivities and the social harmony and long-term sustained development.Based on the data from China Health and Nutrition Survey (CHNS), and using Logistic model, this thesis analyzes the urban working poor and the factors affecting workers in poor. The major purpose of the study is to identify the factors affecting being working poor and the likelihood of being poor by using empirical analysis methods. The empirical results show that, in terms of individual characteristics, those who have lower level of education suffer serious illness and take occupations with poor wages are more likely to be working poor. On the other hand, family factors such as larger family size, higher family average ages and residential places in less developed middle and west parts of China also play significant roles in making workers being poor.At the end of this thesis, policy recommendations based on empirical findings are made. Policy recommendations are discussed from macro and micro perspectives. From the macro perspective, the thesis emphasizes the roles on reducing working poor of adjustment of industrial structures, reforms of tax system, strengthening labor regulations and inspections as well as greater inputs from governments. From the micro perspective, wage rising of low-paid workers and great inputs of individual education and skills, all of which will help to enhance the workers’employability and attain more opportunities with better-paid jobs, have been highlighted.