Growth and Distribution Effects of Changes in Levels of Living in Rural India: A Decomposition Analysis

2020 ◽  
Vol 14 (3) ◽  
pp. 407-423
Author(s):  
Jayanta Sen

This article deals with the changing pattern of levels of living in the rural regions of India during the period of 1993–1994 to 2011–2012 which also corresponds to the on-going economic reforms. These changes may be attributed either to the change in growth component or to the change in equity component or to both. The article therefore examines the effects of growth and distribution components on the variations in levels of living and their relative roles by a scheme of algebraic decomposition. It also investigates the influence of socio-economic factors on levels of living using econometric models. National Sample Survey Organisation consumer expenditure data for 15 major states of India are used for this analysis. Results show an improvement in levels of living (actual) in rural areas of all Indian states. Positive growth effect more than compensates the negative distribution effect and yield positive changes in some of the states. Further, this article argues that the main drivers of this positive change in the levels of living are development of rural physical infrastructure, attainment in education, farm income per capita, non-farm employment and livelihood diversification.

2020 ◽  
Vol 25 (2) ◽  
pp. 237-255
Author(s):  
Balakrushna Padhi ◽  
Mohammad Kashif Khan ◽  
Lalhriatchiani

This study examines the changing structure of poverty and inequality for the northeastern states (NES) of India during the last two decades (1993–94 to 2011–12), by using the modified Kakwani poverty decomposition methodology, analysed by Bhanumurthy and Mitra (2004) based on the National Sample Survey Organisation’s (NSSO) consumer expenditure rounds. The estimates indicate that except for three states (Nagaland, Mizoram and Arunachal Pradesh), all other NES observed a decline in poverty, and Tripura recorded the highest decline in poverty in the second period (2004–05 to 2011–12). Further, an analysis of poverty–growth elasticity (PGE) reveals that only Arunachal Pradesh (0.200), Mizoram (0.412) and Nagaland (1.535) have greater PGE in the second period. A decomposition exercise of changing levels of poverty in terms of the three components—the growth effect, the inequality effect and the population shift effect—confirms that the positive impact of growth could not nullify the negative inequality impact on poverty.


Economies ◽  
2019 ◽  
Vol 7 (4) ◽  
pp. 96 ◽  
Author(s):  
Heshmati ◽  
Maasoumi ◽  
Wan

This article examines the determinants of household income among urban and rural areas in India and evaluates households’ performance with different characteristics in terms of poverty. It uses four rounds of data from the consumer expenditure survey (50th, 1993/1994; 55th, 1999/2000; 61st, 2004/2005; and 66th, 2009/2010) by the National Sample Survey Organization (NSSO) in the empirical section. This study consists of two main parts. In the first, it looks at the impact of the characteristics of the head of the household (age, educational level, marital status, and gender) and household characteristics (main occupational type, household size, and social status) on monthly per capita expenditure through conditional mean least squares (LS) regressions and conditional quantile regressions. Households headed by those who are older, married, belonging to lower castes, and living in less-developed states are more likely to be in poverty. In the second part, the article explores stochastic dominance rankings relative to large classes of welfare functions/preferences between pairwise sub-groups identified by the survey year, gender, social status, and occupational type of the household heads. Our results show that ‘inferior groups’ such as ‘Backward classes’, agricultural labor in rural areas, and casual labor in urban areas are vulnerable and may be targeted for poverty alleviation strategies. The first part sheds light on key determinants of household expenditure, while the second provides a picture of poverty outcomes which helps identify potential target groups for poverty-alleviation strategies.


2018 ◽  
Vol 12 (1) ◽  
pp. 109-117
Author(s):  
Nelson Mandela S.

This article examines the trends in inequality in rural Tamil Nadu between 1993–1994 and 2011–2012 based on consumer expenditure data of the National Sample Survey Office (NSSO). Using “class” as an analytical category in broad Marxian sense, it offers a class perspective to understand inequality by grouping rural households into 11 classes. The article argues that the increase in rural inequality in Tamil Nadu between 1993–1994 and 2004–2005 is partly because of an increase in inequality between the classes, while the inequality within classes remained constant. Thereafter between 2004–2005 and 2011–2012, rural inequality declined following a decrease in the inequality between classes. The article contextualizes and explains these results in the light of other empirical studies.


2020 ◽  
Vol 65 (supp01) ◽  
pp. 139-160
Author(s):  
M. BALAJI

Poverty is an interlacement of income distribution below a threshold value and inequality within that boundary. To unthread the fabric of poverty and understand the dimensions of impoverishment below and around the poverty line, a deeper examination of different facets of deprived and starving households is required. This paper attempts to provide an additional tool in monitoring poverty reduction by computing density ratio and decile density trends by applying Kernel density function for the consumer expenditure distribution from the National Sample Survey Organization’s 55th ( 2000 ), 61st ( 2005 ), 66th ( 2009 ) and 68th ( 2012 ) quinquennial rounds. The progressive Indian state Kerala has exhibited a higher density ratio with the poverty tail flattening when compared with the backward State Bihar. The ways and means to succeed in reaching the end of the sea of hardship in Bihar are explored keeping in view some of the most impressive achievements of Kerala, a developed Indian state.


2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Smita ◽  
Sunil Rajpal ◽  
Shiau-Yun Lu ◽  
William Joe

Abstract Background Developmental policies in low- and middle-income countries pose immense potential within the agriculture sectors to escalate economic growth and development. Almost one-half of the workforces continue to be engaged in agriculture and allied activities with a relatively lower economic contribution than those employed in other sectors. Hence, realizing such potential however requires tremendous scaling up of skill development activities in the sector. Investing in skill development of workers engaged in agricultural and allied activities can potentially display notable value additions, income generation and therefore reductions in widespread deprivations in the form of food insecurity and undernutrition. Further with the direct link between nutrition and productivity, economic gains, it is further imperative to impart market exposure among subsistence and unskilled workers. This study therefore empirically investigates the association between households’ primary occupation and caloric deprivation in India. In particular, in a multivariate and multilevel framework, we identified how closely primary occupation of households explain the variation in caloric deprivation in India. Methods Drawing upon data from 68th round (2011–12) of nationally representative cross-sectional Household Consumer Expenditure Survey (HCES) of National Sample Survey (NSS), Government of India, we examined the association between occupational backgrounds of households and caloric deprivation (average caloric consumption as well as low calorie intake) among Indian households. Results Evidences show that agricultural and fishery labor households have lowest calorie intake (2086 kcal) across all the occupational groups. However, market oriented skilled agricultural and fishery workers’ (2261 kcal – rural, 2165 kcal - urban) have higher calorie intakes than those belonging to subsistence agricultural (2165 kcal – rural, 2149 kcal - urban). Further, the multilevel logistic regression estimates suggest that in rural areas, households engaged in skilled agricultural and fishery works have significantly (at 5% level) lower odds ratio (OR: 0.72, with 95% CI: 0.63; 0.82) of having insufficient calorie intake compared to the unskilled agricultural and fishery laborer households. Estimates from variance partitioning based on multilevel logistic regression models suggest that the households’ occupational group accounts for 7 to 14% of total variation in calorie consumption. Conclusion These insights when combined with the occupation-specific random-effects suggest that investing in skill development of agricultural and fishery workers may have immense potential to strengthen their nutritional status and to reduce deprivation levels.


Author(s):  
Chayanika Mitra

This article attempts to capture gender bias in education expenditure among the religious (Hindu, Muslim and others) and the social groups (SC, ST and General) in West Bengal. Oaxaca–Blinder decomposition technique is used to obtain gender bias for a specific demographic group. Further, an attempt has been made to identify the religious or social groups with the acute problem of gender bias. In this work, 71st round (January–June 2014) education expenditure data (individual level) provided by NSSO (National Sample Survey Office) is used. JEL: I24, R1, C55


Author(s):  
Prachita A. Patil ◽  
Yogesh M. Deshpande

According to the National Sample Survey Organization (NSSO), not more than 14% of business establishments are run by female entrepreneurs in India, especially in rural areas. Entrepreneurship is not an easy step for women. It was traditionally considered as a man's bastion, but now with the due course of time, women are coming in the limelight to fulfil their aspiration as it is a fruitful opportunity where educated or illiterates can do wonders to achieve their dreams. Entrepreneurship is the state of mind which every woman has in her but has not been capitalized in India in a way it should have been. With the drastic change in modernization, people are more comfortable to accept the leading role of women in society, with some exceptions.


2020 ◽  
pp. 026010602094973
Author(s):  
Udaya S Mishra ◽  
Balakrushna Padhi ◽  
Rinju

Background: Calorie undernourishment is often associated with poverty but India presents a unique scene of decline in money-metric poverty and rise in calorie deprivation. Existing literature has varied explanation towards this effect. However, neither are the poor entirely calorie compromised nor do all the non-poor qualify calorie compliance. Aim: This is an attempt at verifying whether calorie undernourishment is a result of choice of food basket or the inadequacy of food expenditure. Method: An answer to this question is attempted with the exploration of data obtained from the National Sample Survey Organization’s Consumption Expenditure of Indian households for the periods 2004–2005 and 2011–2012. Results: Findings reveal that over the last one decade, the average per capita per day calorie intakes have slightly increased from 2040.55 Kcal in 2004–2005 to 2087.33 Kcal in 2011–2012, which has led to the increased share of well-nourished households from 20.21% in the 61st round to 22.78% in the 68th round of survey in rural areas, whereas the similar increase in urban areas is from 36.1% to 40.65%. Conclusions: Calorie undernourishment among the non-poor is observed that calorie undernourishment, if any, among the non-poor is entirely due to choice but the same among the poor has a divide between choice and inadequacy. The urban poor are calorie compromised more due to choice rather than inadequacy as against their rural counterparts. With higher poverty, calorie, non-compliance among the poor is more due to choice when compared with lower magnitude of poverty. These observations form a basis for contesting the common understanding that calorie compromise is entirely driven by inadequacy/incapacity of food expenditure. could be viewed in terms of the food choices made, especially among the poor while setting the minimum threshold of food expenditure to be calorie compliant.


2020 ◽  
Vol 8 (2) ◽  
pp. 150-165
Author(s):  
Priyabrata Sahoo ◽  
Dibakar Sahoo ◽  
Subhash Chandra

This article is an attempt to study the changes in rural poverty and its link with growth of farm sector output for Odisha in the post-reform period. The rural household-type (occupational groups) classification of National Sample Survey Organisation (NSSO) from the unit-level data of Consumer Expenditure Survey (CES) has been used for the class analysis of rural poverty. The Odisha economy has recorded high growth in net state domestic product (NSDP) in the post-reform period. During the decade of the 1990s, the state witnessed a negative growth in farm output, lower reduction in rural poverty and distress occupational mobility from farm to non-farm sector. However, in the next decade, the farm sector registered high growth, higher rural poverty reduction and occupational mobility within the farm sector. There has also been higher growth in monthly per capita expenditure (MPCE) and faster reduction in rural poverty among all the rural occupational groups in the decade of the 2000s. Thus, it is the growth of the farm sector, which remains the major driver of rural poverty reduction in Odisha.


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