Unemployment and household spending in rural and urban India: Evidence from panel data (2019)

Unemployment and household spending in rural and urban India: Evidence from panel data (2019) PDF

Author: Gupta, Manavi

Publisher: Intl Food Policy Res Inst

Published: 2020-12-02

Total Pages: 43

ISBN-13:

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India has recorded high levels of unemployment and low labor force participation rates in recent years even before the onset of the COVID-19 pandemic and the lockdown. How does an episode of unemployment or loss of income affect household consumption expenditure is an important question for designing effective safety nets. We use data on household-specific episodes of job loss and decline in income, from an earlier year (March-April 2019) to estimate the household response to employment shocks. We apply diff-in-diff and quantile regressions to a high-frequency panel data from a nationally representative survey of 1,75,000 households to estimate the impact of a job loss (and change in income) on household consumption expenditure—for urban and rural households, and households across different expenditure levels. We find that loss of employment of an earning member leads to a significant immediate decline in household consumption expenditure. The decline is much larger for urban households and households in the lowest and the highest deciles of monthly per capita. Durable expenses go down the most. Expenditure on health and education also goes down significantly and there is evidence of adjustments in discretionary expenses too, especially for urban households. For households with only one earning member, borrowing does not increase after the job loss, suggesting credit constraints. Government cash transfers help rural households, as the beneficiaries show a smaller reduction in consumption expenditure after the shock. Our findings highlight the high vulnerability of urban households to economic shocks and can inform the design and targeting of income support and other safety-net programs in India and other developing countries.

Perspectives on Poverty in India

Perspectives on Poverty in India PDF

Author: The World Bank

Publisher: World Bank Publications

Published: 2011-04-13

Total Pages: 297

ISBN-13: 0821387286

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The book examines India s experience with poverty reduction in a period of rapid economic growth. Marshalling evidence from multiple sources of survey data and drawing on new methods, the book asks how India s structural transformation - from rural to urban, and from agriculture to nonfarm sectors - is impacting poverty. Our analysis suggests that since the early 1990s, urban growth has emerged as a much more important driver of poverty reduction than in the past. We focus in particular on the role of small and medium size conurbations in India, both as the urban sub-sector in which urban poverty is overwhelmingly concentrated, and as a sub-sector that could potentially stimulate rural-based poverty reduction. Second, in rural areas, we focus on the nature of intersectoral transformation out of agriculture into the nonfarm economy. Stagnation in agriculture has been accompanied by dynamism in the nonfarm sector, but there is much debate about whether the growth seen has been a symptom of agrarian distress or a source of poverty reduction. Finally, alongside the accelerating economic growth and the highly visible transformation that is occurring in India s major cities, inequality is on the rise. This is raising concern that economic growth in India has by-passed significant segments of the population. The third theme on social exclusion asks if, despite the dramatic growth, historically grounded inequalities along lines of caste, tribe and gender have persisted. This book would be of interest for policymakers, researchers, non-governmental organizations, and international agencies from India and abroad--who wish to know more about India s experience of the last two decades in reducing poverty.

Poverty and Food Security in India

Poverty and Food Security in India PDF

Author: Dr. M. S. Bhatt

Publisher: Aakar Books

Published: 2004

Total Pages: 464

ISBN-13: 9788187879374

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Persistence Of Poverty, Hunger And Starvation Along With Growing Availability Of Food Has Rendered The Rationale Of Both Poverty Alleviation And Food Self-Sufficiency Policies Suspect And Created A Paradoxical Situation. There Is A Consensus Among Policy Makers, Planners And Economists That The Problems Of Poverty, Hunger And Malnutrition Have Not Been Solved Satisfactorily. It Is Also Acknowledged That The Persistence Of These Problems Has The Potential Of Undermining The Very Process Of Democratic Governance. Policies And Programmes Have Systematically Failed With A Huge Opportunity Cost.There Is Need For New Answers To These Questions. Available Solutions Have Outlived Their Utility. Time Has Come To Recast And Redefine The Agenda For Poverty And Food Insecurity Eradication. This Is Easier Said Than Done. There Is A Need For A Dispassionate Debate, Discussion And Meaningful Action. This Challenging Task Cannot Be Solved By State Intervention Alone. It Is Against This Backdrop That The Present Volume Seeks To Provide Answers To Some Of The Key Questions.The Main Objective Of The Book Is To Add Fresh Insights To The Theory And Policy Of Poverty And Food Insecurity Alleviation. How Far We Succeeded Shall Be Reflected Through The Pages Of This Book.

Poverty and Social Exclusion in India

Poverty and Social Exclusion in India PDF

Author:

Publisher: World Bank Publications

Published: 2011-01-01

Total Pages: 192

ISBN-13: 0821387332

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Despite India’s record of rapid economic growth and poverty reduction over recent decades, rising inequality in the country has been a subject of concern among policy makers, academics, and activists alike. Poverty and Social Exclusion in India focuses on social exclusion, which has its roots in India’s historical divisions along lines of caste, tribe, and the excluded sex, that is, women. These inequalities are more structural in nature and have kept entire groups trapped, unable to take advantage of opportunities that economic growth offers. Culturally rooted systems perpetuate inequality, and, rather than a culture of poverty that afflicts disadvantaged groups, it is, in fact, these inequality traps that prevent these groups from breaking out. Combining rigorous quantitative research with a discussion of these underlying processes, this book finds that exclusion can be explained by inequality in opportunities, inequality in access to markets, and inequality in voice and agency. This report will be of interest to policy makers, development practitioners, social scientists, and academics working to foster equality in India.

Poverty in the Philippines

Poverty in the Philippines PDF

Author: Asian Development Bank

Publisher: Asian Development Bank

Published: 2009-12-01

Total Pages: 188

ISBN-13: 9292547410

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Against the backdrop of the global financial crisis and rising food, fuel, and commodity prices, addressing poverty and inequality in the Philippines remains a challenge. The proportion of households living below the official poverty line has declined slowly and unevenly in the past four decades, and poverty reduction has been much slower than in neighboring countries such as the People's Republic of China, Indonesia, Thailand, and Viet Nam. Economic growth has gone through boom and bust cycles, and recent episodes of moderate economic expansion have had limited impact on the poor. Great inequality across income brackets, regions, and sectors, as well as unmanaged population growth, are considered some of the key factors constraining poverty reduction efforts. This publication analyzes the causes of poverty and recommends ways to accelerate poverty reduction and achieve more inclusive growth. it also provides an overview of current government responses, strategies, and achievements in the fight against poverty and identifies and prioritizes future needs and interventions. The analysis is based on current literature and the latest available data, including the 2006 Family Income and Expenditure Survey.

Characteristics and Influential Factors of Food Deserts

Characteristics and Influential Factors of Food Deserts PDF

Author: Paula Dutko

Publisher:

Published: 2012

Total Pages: 30

ISBN-13:

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Introd. -- Literature -- Method for defining and measuring food deserts -- Descriptive analyses -- Results: comparing food desert tracts with all other tracts -- Changes in food desert tract characteristics over time -- Regression analysis: methodology -- Conclusion -- References.

Rural Poverty in Developing Countries

Rural Poverty in Developing Countries PDF

Author: Mr.Mahmood Hasan Khan

Publisher: International Monetary Fund

Published: 2000-04-01

Total Pages: 34

ISBN-13: 1451850093

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In most developing countries, poverty is more widespread and severe in rural than in urban areas. The author reviews some important aspects of rural poverty and draws key implications for public policy. He presents a policy framework for reducing poverty, taking into account the functional differences and overlap between the rural poor. Several policy options are delineated and explained, including stable management of the macroeconomic environment, transfer of assets, investment in and access to the physical and social infrastructure, access to credit and jobs, and provision of safety nets. Finally, some guideposts are identified for assessing strategies to reduce rural poverty.

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