Abstract
An analysis of poverty change between 2004–2005 and 2009–2010 is decomposed into the within-group effects of growth, inequality, and population components and the between-group effect on account of changes in population shares. The relatively higher incidence of poverty is not restricted to the known poorer states viz., Chhattisgarh, Assam, Bihar, Madhya Pradesh, Odisha, Uttar Pradesh, and Jharkhand (CABMOUJ, pronounced kab mouj implying when to relax), but also includes regions in some of the better-off states of Andhra Pradesh, Gujarat, and Maharashtra and also in some of the Northeast states. Growth effects having adverse implications on poverty reduction is also observed in some regions of Punjab, Gujarat, and West Bengal among others. Increasing inequality is a matter of concern, particularly in regions comprising some well-known urban centers. Negative effects from population growth subsumed other effects in Northern Bihar, Eastern Gujarat, and Southern Odisha. Shift in population shares point out that people out-migrate from regions, where growth has adverse implications on poverty change. Providing opportunities and improving capabilities of people to take advantage of opportunities made available, particularly in regions where poverty has increased, should be a public policy priority.
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Notes
- 1.
In Mishra (2015), the base followed was period 1. At the three broader levels, the components of income growth, inequality, and population effects will remain the same, independent of the base time period. However, with a change in the base period, the specific attribution and interpretation will change when the broader levels are further disaggregated. In particular, the sequence of the (2)–(7) will get reversed.
- 2.
- 3.
The results at the aggregate level will differ from Mishra (2015) for two reasons. The calculations and weights in the current exercise are region specific whereas in the earlier exercise they were state specific. Besides, the population used in the current exercise is obtained from the unit level data whereas in the earlier exercise the population from Censuses of 2001 and 2011 were interpolated at the state level.
- 4.
There were 78 NSS regions in 2004–2005 (61st round) and 88 NSS regions in 2009–2010 (66th round). However, to make them comparable, they were reduced to 74 comparable regions. Details of the 74 regions, as per the 61st round, are given in Appendix.
- 5.
On inequality , the method proposed is to control for the Lorenz ratio/Gini coefficient. This implies that we control for the distribution that is independent of scale. Hence, it will not control the increasing real gaps at the absolute level. Further, as the inequality was controlled at the regional level, it could change at the state or national level.
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Appendix: State, Region-Specific Code and NSS Region of 2005–2005
Appendix: State, Region-Specific Code and NSS Region of 2005–2005
State/union territory | Region-specific code | NSS region of 2004–2005 (61st round) |
|---|---|---|
Andaman and Nicobar Island | AN0 | Entire union territory |
Andhra Pradesh | AP1 | Coastal |
Andhra Pradesh | AP2 | South Western + Inland Southern (Rayalseema) |
Arunachal Pradesh | AR0 | Entire state |
Assam | AS1 | Plains Eastern + Hills |
Assam | AS2 | Plains Western |
Bihar | BI1 | Northern |
Bihar | BI2 | Central |
Chandigarh | CN0 | Entire union territory |
Chhattisgarh | CT0 | Entire state |
Dadra and Nagar Haveli | DA0 | Entire union territory |
Daman and Diu | DD0 | Entire union territory |
Delhi | DE0 | Entire state |
Goa | GO0 | Entire state |
Gujarat | GU1 | Eastern |
Gujarat | GU2 | Plains Northern |
Gujarat | GU3 | Plains Southern |
Gujarat | GU4 | Dry areas |
Gujarat | GU5 | Saurashtra |
Haryana | HA1 | Eastern |
Haryana | HA2 | Western |
Himachal Pradesh | HP0 | Entire state |
Jammu and Kashmir | JK1 | Mountainous |
Jammu and Kashmir | JK2 | Outer Hills |
Jammu and Kashmir | JK3 | Jhelum Valley |
Jharkhand | JN0 | Jharkhand |
Karnataka | KA1 | Coastal & Ghats |
Karnataka | KA2 | Inland Eastern |
Karnataka | KA3 | Inland Southern |
Karnataka | KA4 | Inland Northern |
Kerala | KE1 | Northern |
Kerala | KE2 | Southern |
Lakshadweep | LA0 | Entire union territory |
Madhya Pradesh | MP1 | Vindhya |
Madhya Pradesh | MP2 | Central |
Madhya Pradesh | MP3 | Malwa |
Madhya Pradesh | MP4 | South |
Madhya Pradesh | MP5 | South Western |
Madhya Pradesh | MP6 | Northern |
Maharashtra | MR1 | Coastal (Konkan) |
Maharashtra | MR2 | Inland Western (Western Maharashtra) |
Maharashtra | MR3 | Inland Northern |
Maharashtra | MR4 | Inland Central (Marathwada) |
Maharashtra | MR5 | Inland Eastern (Inland Vidarbha) |
Maharashtra | MR6 | Eastern (Eastern Vidarbha) |
Manipur | MU1 | Plains |
Manipur | MU2 | Hills |
Meghalaya | MY0 | Entire state |
Mizoram | MZ0 | Entire state |
Nagaland | NA0 | Entire state |
Odisha | OD1 | Coastal |
Odisha | OD2 | Southern |
Odisha | OD3 | Northern |
Puducherry | PD0 | Entire state |
Punjab | PN1 | Northern |
Punjab | PN2 | Southern |
Rajasthan | RA1 | Western + North-eastern |
Rajasthan | RA2 | Southern |
Rajasthan | RA3 | South-eastern |
Sikkim | SI0 | Entire state |
Telengana | TE0 | Entire state |
Tamil Nadu | TN1 | Coastal Northern |
Tamil Nadu | TN2 | Coastal |
Tamil Nadu | TN3 | Southern |
Tamil Nadu | TN4 | Inland |
Tripura | TR0 | Entire state |
Uttar Pradesh | UP1 | Western + Central |
Uttar Pradesh | UP2 | Eastern |
Uttar Pradesh | UP3 | Southern |
Uttarakhand | UT0 | Entire state |
West Bengal | WB1 | Himalayan |
West Bengal | WB2 | Eastern plains |
West Bengal | WB3 | Central plains |
West Bengal | WB4 | Western plains |
India | AIN | Entire country |
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Mishra, S. (2017). Decomposing Poverty Change in India: Within-and Between-Group Effects Across Regions, 2004–2005 and 2009–2010. In: Batabyal, A., Nijkamp, P. (eds) Regional Growth and Sustainable Development in Asia. New Frontiers in Regional Science: Asian Perspectives, vol 7. Springer, Cham. https://doi.org/10.1007/978-3-319-27589-5_3
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