Poverty and Inequality in urban India with special reference to West Bengal

Mukherjee, Nandini and Chatterjee, Biswajit (2014): Poverty and Inequality in urban India with special reference to West Bengal.

Abstract

Abstract : In recent times rapid growth in urban population in the developing nations has been accompanied by a parallel growth in the incidence of urban poverty. The objective of the paper is to estimate the incidence of poverty and inequality in urban India during the last three decades using Parameterized Lorenz curve methods. Then using panel regression the study examine how the incidence of urban poverty is being affected by various socio economics factors in urban West Bengal, a state located in eastern India. The study is based on the unit level consumption expenditure data of different rounds of National Sample Survey Organisation(NSSO). The study reveals that the incidence of urban poverty have been quite high for the states of India during the earlier periods as compared to the latter periods. In case of West Bengal the decline in urban poverty is associated with a faster pace of urbanization, small size of the household, decline in urban inequality, growth in per capita industrial income and rise in per capita public expenditure on education and health. Finally the study tries to propose some appropriate policies for reducing urban poverty in the state.

• Item Type: MPRA Paper
• Language: English
• Keywords: Urban poverty, Consumption expenditure, Urban inequality, Lorenz curve
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I32 - Measurement and Analysis of Poverty; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P25 - Urban, Rural, and Regional Economics

References

Asian Development Bank, (1999): “Fighting Poverty in Asia and the Pacific: The Poverty Reduction Strategy” Manila, Philippines.

Bhanumurthy, N.R. and Mitra Arup (2004), “Economic Growth, Poverty, and Inequality in Indian States in the Pre-reform and Reform Periods”, Asian Development Review, vol. 21, no. 2, pp. 79-99 , Asian Development Bank.

Bhanumurthy,N.R. and Mitra Arup (2004), “Declining Poverty in India: A Decomposition Analysis”, Institute of Economic Growth, Delhi University Enclave, Delhi – 110 007, India.

Datt, Gaurav and Ravallion ,Martin(1992), ‘Growth and redistribution components of changes in poverty measures: a decomposition with applications to Brazil and India in the 1980s.’,Journal of Development Economics,Vol38, pgs 275-295.

Datt, Gaurav (1998) , ‘Computational Tools For Poverty Measurement And Analysis’ ,Fcnd Discussion Paper No. 50,Food Consumption And Nutrition Division, International Food Policy Research Institute.

Deolalikar, Anil, B., and Dubey, Amaresh (2003), “Levels and determinants of hunger poverty in urban India during the 1990 s”. Paper prepared for Urban Research Symposium, The World Bank.

Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).

Firdausy, Carunia Mulya :Urban poverty in Indonesia: trends, issues, and policies.

Greene, W H (2003): Econometric Analysis, Pearson Education Inc, New Jersey.

Gunewardena, Dileni.(1999), “Urban Poverty in South Asia :What do we know? What do we need to know?” Paper prepared for Poverty Reduction and Social Progress: New Trends and Emerging Lessons, Regional dialogue and consultation on WDR2001 for South Asia.

Govt of India- “Census of India (1971)”, “Census of India( 1981)”, “Census of India (1991)”, -“Census of India (2001)”.

Census Reports. -(2001), Poverty Estimates for 1999-2000, Press Release, Press Information Bureau, 22nd February.

- (2012)“Report of the expert group to recommend the detailed methodology for identification of families living below poverty line in urban areas”, December 2012

- (2013): “Press Note on Poverty estimates,2011-12”, July 2013; GOI,Press Information Bureau.

Govt. of West Bengal , -Municipality Statistics of West Bengal of different years ( 1981-2009), Bureau of Applied Economics and Statistics.

-Kolkata Municipal corporation Budget of different Years, -“Statistical Abstract (1978-1989,combined)”, “Statistical Abstract (1994-95)”, Bureau of Applied Economics and Statistics.

Jha, Raghbendra, Bagala Biswal, & Biswal, Urvashi D(2001) :“An Empirical Analysis of the Impact of Public Expenditures on Education and Health on Poverty in Indian States” Queen’s Economics Department Working Paper No. 998.

Kakwani, N and E M Pernia (2000): ‘What is Pro-Poor Growth?’ Asian Development Review, Volume 18, Number 1.

Mazumdar, D., and H. H. Son, (2002 ): “Vulnerable Groups and the Labor Market in Thailand: Impact of the Asian Financial Crisis in the Light of Thailand. Growth Process.” Paper presented at a Workshop on Impact of Globalization on the Labor Markets, National Council of Applied Economic Research, Delhi.

Mitra Arup(1992): “Growth and Poverty: The Urban Legend” , Economic and Political Weekly, Vol. 27, No. 13 ,Mar. 28, pp. 659-665.

National Sample Survey Organisation(NSSO), -NSS Reports- “ Level and Pattern of consumption expenditure”, Report no 538, 508, 457, 402, 374 ,372 and 319 , Ministry of Statistics and Programme Implementation, GOI.

-Unit level data on Consumer expenditure, round 43(1987-88), schedule 1.0; round 50 (1993-94), schedule 1.0; round 55(1999-00), schedule 1.0; round 61(2004-05), schedule 1.0 and round 66(2009-10), schedule 1.0; Ministry of Statistics and Programme Implementation, GOI.

-Seminar on Issues in Measurement of level of living based on NSS Surveys, Kolkata,March, 2009

Nayyar Gaurav (2005): “Growth and Poverty in Rural India: An Analysis of Inter-State Differences”, The Economic and Political Weekly April 16, 2005.

Pandey, Arvind Kumar(2013): “Changing dynamics of rural-urban male migration and economic development in India after economic reforms”. Man and Development, Vol XXXV No I, March 2013.

Pandey,K.K (2012): ‘Administration of Urban Development and Urban Service Delivery; Theme Paper for the56th Members’ Annual Conference, 2012.

Sandhu, R.S(2000), “Housing poverty in urban India”, Social Change, Volume 30(1&2), March-June.

Serumaga-Zake Philip, and Naude, William .(2002), “ The determinants of rural and urban household poverty in the North West province of South Africa”. Development Southern Africa Vol. 19, No.

Singh Satpal(2006); “ Extent of urban poverty in India” - Dimensions of urban poverty,edited by Sabir Ali(Rawat Publication) .

Taylor, W E (1980): ‘Small Sample Considerations in Estimation from Panel Data’, Journal of Econometrics, Volume 13, pp 203-23.

Wooldridge ( 2007):- Introductory Econometrics : Modern Approach,3rd ed, Thomson South Western - Econometrics Analysis of Cross section and Panel Data , MIT Press Cambridge.

Yao.Shujie,Zhang. Zongyi and Hanmer .Lucia(2004), “Growing inequality and poverty in China”, China Economic Review, Volume 15, Issue 2, 2004, Pages 145-163.