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Urban Transportation Infrastructure and Poverty Reduction: Delhi Metro's Impact on the Cycle Rickshaw Rental Market

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  • Kurosaki, Takashi
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    Abstract

    Based on a primary survey of cycle rickshaw pullers and rickshaw owners in Delhi, India, this paper estimates the causal impact of the opening and extension of Delhi Metro on the rental rates of cycle rickshaws. The cycle rickshaw rental market provides employment opportunities for unskilled, assetless workers who have migrated from rural areas because of poverty. A change in this market is thus expected to affect urban and rural poverty. Controlling for unobservable area characteristics using house tax information, we identify the causal impact depending on when Metro stations opened over the past decade. The regression results indicate that of the 1.6 percentage point increase in rental rates per km associated with a reduction in distance to a Metro station, approximately 1.0 point is attributable to the causal effect. Thus, Delhi Metro has increased the demand for cycle rickshaw services, which is a pro-poor consequence of the infrastructural investment.

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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/22870/1/No24-dp.pdf
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    Bibliographic Info

    Paper provided by Institute of Economic Research, Hitotsubashi University in its series PRIMCED Discussion Paper Series with number 24.

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    Length: 24 p.
    Date of creation: Mar 2012
    Date of revision:
    Handle: RePEc:hit:primdp:24

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    Keywords: urban poverty; migration; infrastructure; informal sector;

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    1. Shonchoy, Abu S., 2011. "Seasonal migration and micro-credit in the lean period : evidence from northwest Bangladesh," IDE Discussion Papers 294, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Robert Jensen, 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 879-924, 08.
    3. Dave Donaldson, 2010. "Railroads of the Raj: Estimating the Impact of Transportation Infrastructure," NBER Working Papers 16487, National Bureau of Economic Research, Inc.
    4. Sawada Yasuyuki & Sugawara Shinya & Shoji Masahiro & Shinkai Naoko, 2014. "The Role of Infrastructure in Mitigating Poverty Dynamics: The Case of an Irrigation Project in Sri Lanka," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(3), pages 28, July.
    5. Taryn Dinkelman, 2011. "The Effects of Rural Electrification on Employment: New Evidence from South Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3078-3108, December.
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