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Why did Poverty Decline in India? : A Nonparametric Decomposition Exercise / Carlos Felipe Balcazar.
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Balcazar, Carlos Felipe.
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Dependency Ratios.
- Inequality.
- Labor Income.
- Nonparametric Decomposition.
- Poverty Reduction.
- Poverty.
- Pro-Poor Growth.
- Remittances.
- Rural Poverty Reduction.
- Services and Transfers to Poor.
- Local Subjects:
- Dependency Ratios.
- Inequality.
- Labor Income.
- Nonparametric Decomposition.
- Poverty Reduction.
- Poverty.
- Pro-Poor Growth.
- Remittances.
- Rural Poverty Reduction.
- Services and Transfers to Poor.
- Physical Description:
- 1 online resource (38 pages)
- Other Title:
- Why did Poverty Decline in India?
- Place of Publication:
- Washington, D.C. : The World Bank, 2016.
- System Details:
- data file
- Summary:
- This paper uses panel data to analyze factors that contributed to the rapid decline in poverty in India between 2005 and 2012. The analysis employs a nonparametric decomposition method that measures the relative contributions of different components of household livelihoods to observed changes in poverty. The results show that poverty decline is associated with a significant increase in labor earnings, explained in turn by a steep rise in wages for unskilled labor, and diversification from farm to nonfarm sources of income in rural areas. Transfers, in the form of remittances and social programs, have contributed but are not the primary drivers of poverty ecline over this period. The pattern of changes is consistent with processes associated with structural transformation, which add up to a highly pro-poor pattern of income growth over the initial distribution of income and consumption. However, certain social groups (Adivasis and alits) are found to be more likely to stay in or fall into poverty and less likely to move out of poverty. And even as poverty has reduced dramatically, the share of vulnerable population has not.
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