This paper investigates the impact of social networks on subjective poverty among Chinese residents using data from the China Labor Dynamics Survey (CLDS) from 2014, 2016, and 2018. The study finds that social networks influence subjective poverty through two mechanisms: social support and reference groups. Social support, encompassing emotional and instrumental aspects, effectively alleviates subjective poverty. Furthermore, an individual's relative status within their social network, acting as a reference group, also impacts subjective poverty; higher status correlates with lower subjective poverty. Objective poverty plays a mediating role between social support and subjective poverty, and a moderating role in the reference group mechanism, weakening the effect of social networks on subjective poverty when individuals are objectively poor. The findings highlight the importance of considering both social support and reference group functions of social networks for a comprehensive understanding of their impact on subjective poverty alleviation.

Suxia Li, Meng Cai