Article
Targeting, Universalism and Child Poverty in Hong Kong
Child Indicators Research
(2018)
Abstract
Concerns about the long-term effects of child poverty on individuals and society have
been increasing. Urgent action needs to be taken to combat child poverty, but what is the best
strategy likely to be? The relative effectiveness of means-tested versus universal schemes for
poverty alleviation strategies has long been debated. Key differences include screening costs,
targeting errors, incentive gaps and issues of financial sustainability. This article explores and
compares the extent to which the Hong Kong SAR Government’s current means-tested
Comprehensive Social Security Assistance (CSSA) scheme and alternative simulated
means-tested and universal schemes could alleviate child poverty and income inequality. Core
data for the study was taken from cross-sectional household survey data in Hong Kong. The
study found that means-tested schemes with flat rates had higher adequacy in terms of the
amount of benefits reaching poor households, than those with sliding scales. Targeting schemes
had relatively higher exclusion errors compared to schemes with universal benefits. Evidence
was found that that universal benefit schemes with flat rates had substantially greater impacts on
all child poverty and income inequality indicators compared to the current CSSA and simulated
means-tested schemes with flat rate benefits. The study is timely and presents a new and
important opportunity to assess the extent to which a simulated policy change from
means-tested to universal benefit could more effectively combat child poverty and reduce
income inequality as well as achieve financial sustainability. The article concludes that more
effective policy initiatives and approaches to child poverty and income inequality could be gained
by varying dimensions, including: type of programmes (means-tested versus universal basis);
benefit levels; and delivery methods (flat rate versus sliding scales). The projected expenditures
of 42 cash transfer benefit schemes and four selected means-tested and universal programmes
with the lowest and highest average costs can form the basis for future discussion on policy
options to promote social and economic improvement for all groups.
Keywords
- Means-tested,
- Universalism,
- Child poverty,
- Inequality,
- Effectiveness,
- Efficiency
Disciplines
Publication Date
Spring February 10, 2018
DOI
10.1007/s12187-018-9540-9
Citation Information
Ka-wai, Maggie LAU and Kee Lee CHOU. "Targeting, Universalism and Child Poverty in Hong Kong" Child Indicators Research (2018) Available at: http://works.bepress.com/maggielau/29/