Why is Poverty Declining so Slowly in India?
Despite an impressive growth record, India’s poverty performance over the last two decades leaves something to be desired. During the high growth period of 1990–2005, the headcount ratios at both $1.25 and $2 levels have been declining more slowly in India than the LDC average and even more slowly than Sub Saharan Africa (Lenagala and Ram 2010). The goal of this paper is to explore why this might be so.
KeywordsTotal Factor Productivity Skilled Worker Informal Sector Consumption Expenditure Unskilled Worker
We thank Anil Deolalikar, Bharat Ramaswami, Wilima Wadhwa and the participants of the IGIDR Silver Jubilee conference for helpful comments.
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