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Poverty Dynamics in Rural India: An Asset-Based Approach

Author

Listed:
  • Swati Dutta

    (Swati Dutta is Doctoral Scholar, Institute for Financial Management and Research (IFMR), Kothari Road, Chennai, email: swati.dutta@ifmr.ac.in)

  • Lakshmi Kumar

    (Lakshmi Kumar is Associate Professor, IFMR, email: lakshmik@ifmr.ac.in)

Abstract

To make directed policy for different categories of identified rural poor in India, the current focus on static income poverty as a measure is insufficient. This article uses the asset-based approach to quantify poverty dynamics for the years 1992, 1998 and 2005, for the entire country and for various states. We find that at all India level 35 per cent of the rural households are asset poor, of which 22 per cent are chronically poor and 13 per cent are transient poor. An additional 9 per cent of rural non-poor households live under the threat of poverty. This article also analyses trends in asset poverty in various states, with policy recommendations based on their asset poverty status. JEL Classification: I32, I38, C21, C25

Suggested Citation

  • Swati Dutta & Lakshmi Kumar, 2013. "Poverty Dynamics in Rural India: An Asset-Based Approach," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 7(4), pages 475-506, November.
    • Handle: RePEc:sae:mareco:v:7:y:2013:i:4:p:475-506
    DOI: 10.1177/0973801013500134
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    References listed on IDEAS

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    More about this item

    Keywords

    Poverty; Vulnerability; Asset; Multiple Correspondence Analyses; India;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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