Social support and reference group: the dual action mechanism of the social network on subjective poverty

Abstract

The social network is an important way to promote subjective poverty alleviation. Based on China Labor Dynamics Survey (CLDS) data from 2014, 2016, and 2018, this paper analyzes the action mechanism of social networks on the subjective poverty of Chinese residents. The results find that social network acts on subjective poverty through social support and reference groups. Specifically, social networks provide emotional and instrumental social support for individuals, which can effectively alleviate subjective poverty. In addition, when the social network members serve as the reference group, the higher the status of individuals in the network, the weaker the subjective poverty. Secondly, objective poverty is the mediating path between the social support function of social networks and subjective poverty. Finally, objective poverty is a regulator of the effect of social networks as a reference group on subjective poverty. When individuals are objectively poor, the alleviating effect of social networks as a reference group on subjective poverty is weakened. In summary, placing social networks’ social support and reference group functions under the same framework helps fully grasp social networks’ social benefits. As a result, consolidating China’s poverty reduction achievements and focusing on the informal social insurance role of social networks are conducive to alleviating subjective poverty.