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Poverty Among Elderly in India

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  • Akanksha Srivastava

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  • Sanjay Mohanty

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    Abstract

    Using consumption expenditure data of the National Sample Survey 2004–2005, this paper estimates the size of elderly poor and tests the hypotheses that elderly households are not economically better-off compared to non-elderly households in India. Poverty estimates are derived under three scenarios—by applying the official cut-off point of the poverty line to household consumption expenditure (unadjusted), consumption expenditure adjusted to household size and consumption expenditure adjusted to household composition. Results show that an estimated 18 million elderly in India are living below the poverty line. On adjusting the consumption expenditure to household size and composition, there are no significant differences in the incidence of poverty among elderly and non-elderly households in India. This is in contrast to the notion that elderly households are better off than non-elderly households in India. Based on the findings, we suggest that the age dimension should be integrated into social policies for evidence based planning. Copyright Springer Science+Business Media B.V. 2012

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    Bibliographic Info

    Article provided by Springer in its journal Social Indicators Research.

    Volume (Year): 109 (2012)
    Issue (Month): 3 (December)
    Pages: 493-514

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    Handle: RePEc:spr:soinre:v:109:y:2012:i:3:p:493-514

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    Web page: http://www.springer.com/economics/journal/11135

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    Keywords: Poverty; Household size; Household composition; MPCE; Elderly; Non-elderly; India;

    References

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    1. Hurd, Michael D, 1990. "Research on the Elderly: Economic Status, Retirement, and Consumption and Saving," Journal of Economic Literature, American Economic Association, vol. 28(2), pages 565-637, June.
    2. Dreze, Jean & Srinivasan, P. V., 1997. "Widowhood and poverty in rural India: Some inferences from household survey data," Journal of Development Economics, Elsevier, vol. 54(2), pages 217-234, December.
    3. Leonardo Gasparini & Javier Alejo & Francisco Haimovich & Sergio Olivieri & Leopoldo Tornarolli, 2007. "Poverty among the Elderly in Latin America and the Caribbean," CEDLAS, Working Papers, CEDLAS, Universidad Nacional de La Plata 0055, CEDLAS, Universidad Nacional de La Plata.
    4. Angus Deaton & Salman Zaidi, 1999. "Guidelines for Constructing Consumption Aggregates For Welfare Analysis," Working Papers 217, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    5. Pandey, Manoj K., 2009. "On ageing, health and poverty in rural India," MPRA Paper 15932, University Library of Munich, Germany.
    6. Buhmann, Brigitte, et al, 1988. "Equivalence Scales, Well-Being, Inequality, and Poverty: Sensitivity Estimates across Ten Countries Using the Luxembourg Income Study (LIS) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-42, June.
    7. Sarmistha Pal & Robert Palacios, 2005. "Old Age Poverty In The Indian States: What The Household Data Can Say?," Labor and Demography, EconWPA 0505015, EconWPA.
    8. Angus S. Deaton & Christina Paxson, 1998. "Measuring Poverty among the Elderly," NBER Chapters, in: Inquiries in the Economics of Aging, pages 169-204 National Bureau of Economic Research, Inc.
    9. J.V. Meenakshi & Ranjan Ray, 2000. "Impact of Household Size and Family Composition on Poverty in Rural India," ASARC Working Papers, The Australian National University, Australia South Asia Research Centre 2000-02, The Australian National University, Australia South Asia Research Centre.
    10. Manoj K. Pandey, 2009. "On Ageing, Health and Poverty in Rural India," ASARC Working Papers, The Australian National University, Australia South Asia Research Centre 2009-14, The Australian National University, Australia South Asia Research Centre.
    11. Pal, Sarmistha & Palacios, Robert, 2008. "Understanding Poverty among the Elderly in India: Implications for Social Pension Policy," IZA Discussion Papers 3431, Institute for the Study of Labor (IZA).
    12. Zimmer, Zachary, 2008. "Poverty, wealth inequality and health among older adults in rural Cambodia," Social Science & Medicine, Elsevier, vol. 66(1), pages 57-71, January.
    13. Nelson, Julie A, 1988. "Household Economies of Scale in Consumption: Theory and Evidence," Econometrica, Econometric Society, Econometric Society, vol. 56(6), pages 1301-14, November.
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    Cited by:
    1. Sanjay Mohanty & Rajesh Chauhan & Sumit Mazumdar & Akanksha Srivastava, 2014. "Out-of-pocket Expenditure on Health Care Among Elderly and Non-elderly Households in India," Social Indicators Research, Springer, Springer, vol. 115(3), pages 1137-1157, February.

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