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Questioning the poverty line aggregation approach in India: Issues of mismatches and overlaps

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  • Akarsh Arora
  • Sukhpal Singh

Abstract

The Rangarajan Expert Group (REG), an official constituted panel of experts, decided to extend the traditional practice of food component‐based poverty line to three components (food, essential nonfood, and other nonfood) based poverty line. Although this multiple component‐based poverty identification is an innovative step; the present study questions the justification for combining the food and nonfood dimensions and estimating poverty just by an aggregated poverty line as presented by the REG. To test this argument empirically, this study evaluates the mismatches and overlaps in poverty identification based on the REG approach of an aggregated poverty line and the proposed component‐specific poverty line approach in the present study, using the unit level data of the 68th round of the Consumption Expenditure Survey of NSSO (conducted during 2011–2012). Our analysis reveals a high proportion of mismatches (with minimal overlaps) and therefore, this nullifies the notion that the REG aggregated poverty line‐based poverty identification is capable of measuring food and nonfood deprivations separately. Moreover, the substantial evidence of misclassification errors between “poor” as per the REG aggregated poverty line and the three constructed categories of poor by the present study namely “Ultra poor,” “Actually poor,” and “Possibly poor” also shows that the REG aggregated poverty line cannot serve as a proxy to represent the extent of joint deprivation in food, essential nonfood, and other nonfood components. 由官方组成的专家小组——Rangarajan 专家组(REG)——决定将基于食品的贫困线这一传统实践扩展到至少基于三个成分(食品、必需非食品和其他非食品)的贫困线。尽管这种基于多成分的贫困识别法是一项创新之举;但本研究对“将食品和非食品维度结合起来并仅通过REG提出的聚合贫困线来估计贫困的理由”进行质疑。为从实证上检验该论点,本研究使用印度国家样本调查组织(NSSO)第68次消费支出调查(于2011年至2012年间进行)的单位数据,评价了基于REG聚合贫困线方法在识别贫困时出现的不匹配和重叠,并评价了本研究提出的针对具体成分的贫困线方法。我们的分析揭示了高比例的不匹配(和最低的重叠部分),因此否定了“基于REG聚合贫困线方法的贫困识别能够分别衡量食品和非食品贫困”这一概念。此外,根据REG聚合贫困线识别的“贫困”与本研究提出的三个贫困类别(即“超贫困”、“实际贫困”和“可能贫困”)之间的大量错误分类证据,表明了REG聚合贫困线不能代表“食品、必需非食品和其他非食品”成分的多维度贫困程度。 El Grupo de Expertos de Rangarajan (REG), un panel oficial de expertos, decidió extender la práctica tradicional de la línea de pobreza basada en componentes alimentarios a al menos tres líneas de pobreza basadas en componentes (alimentos, no alimentarios esenciales y otros no alimentarios). Aunque esta identificación de la pobreza basada en componentes múltiples es un paso innovador; el presente estudio cuestiona la justificación para combinar las dimensiones alimentarias y no alimentarias y estimar la pobreza solo por línea de pobreza agregada como lo presenta REG. Para probar este argumento empíricamente, este estudio evalúa los desajustes y las superposiciones en la identificación de la pobreza con base en el enfoque REG de la línea de pobreza agregada y el enfoque de la línea de pobreza específica del componente propuesto por el presente estudio, utilizando los datos a nivel de unidad de la Encuesta de Gastos de Consumo de la ronda 68. de NSSO (realizado durante 2011–12). Nuestro análisis revela una alta proporción de desajustes (con superposiciones mínimas) y, por lo tanto, esto anula la noción de que la identificación de la pobreza basada en la línea de pobreza agregada de REG es capaz de medir las privaciones alimentarias y no alimentarias por separado. Además, la evidencia sustancial de errores de clasificación entre 'pobres' según la línea de pobreza agregada de REG y las tres categorías de pobres construidas por el presente estudio, a saber, 'Ultrapobres', 'Realmente pobres' y 'Posiblemente pobres', también muestra que la línea de pobreza agregada de REG no puede servir como sustituto para representar el alcance de la privación conjunta en alimentos, no alimentos esenciales y otros componentes no alimentarios.

Suggested Citation

  • Akarsh Arora & Sukhpal Singh, 2022. "Questioning the poverty line aggregation approach in India: Issues of mismatches and overlaps," Poverty & Public Policy, John Wiley & Sons, vol. 14(2), pages 117-136, June.
  • Handle: RePEc:wly:povpop:v:14:y:2022:i:2:p:117-136
    DOI: 10.1002/pop4.336
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    References listed on IDEAS

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