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Decomposing poverty change in India: Within – and between – group effects across regions, 2004 – 05 and 2009 – 10

Srijit Mishra

Nabakrushna Choudhury Centre for Development Studies, Working Paper No. 65

An analysis of poverty change between 2004-05 and 2009-10 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 centres. 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.
Courtesy: NKCCDS
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