IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/44815.html
   My bibliography  Save this paper

Dimensions of Rural Poverty in Bihar: A Village Level Study

Author

Listed:
  • Singh, K.M.
  • Singh, R.K.P.
  • Kumar, Abhay
  • Meena, M.S.
  • Jha, A.K.
  • Kumar, Anjani

Abstract

The measures of poverty involves a) the specification of the threshold income level below which a person is considered poor (the poverty line) and b) construction of an index to measure the intensity and severity of poverty suffered by those whose income is below the poverty line. Sen(1976) has proposed several criteria that a poverty measure must satisfy to be able to assess the changes in social welfare whereas Foster et al (1984) proposed a class of poverty measures that are additively decomposable and that satisfy all the criteria for an ideal poverty measure. For this study, we used a method known as FGT index to measure the incidence of poverty (headcount ratio), intensity of poverty (poverty gap ratio) and severity of poverty (squared poverty gap ratio). To find out the determinants of poverty, affecting the probability of an individual being poor, we estimated a Probit model using poverty as a dependent factor-a binary (poor-1 and non-poor-0) and a set of agricultural and socio-economic variables as explanatory variables. Despite annual growth of more than 10 per cent in Bihar’s economy, poverty remained the same during 2004-05-2009-10.Incidence of poverty was double among agricultural labours than that of farm households and the poverty gap between farm and agricultural labour households increased during last two decades. The decline in poverty has been also higher among farm households than the decline observed among agricultural labour households during last two decades however the decline in poverty was comparatively high among agricultural households than farm households during 2004-05-2009-10, mainly due to adverse weather at one hand and increase in wages of agricultural labour at another during the period. The comparatively high poverty incidence, gap and severity are observed in less developed village than developed villages in Bihar. Hence it may inferred that the level of development has direct influence on poverty alleviation that is; higher the development, lower the level of poverty in rural area. In villages, land is the main income generating asset hence the poverty incidence, gap and severity level are comparatively low in case of large households but the observation does not hold true in case of medium and small households because their land base is very low in Bihar. The highest poverty incidence, gap and severity are not found among labour households. It is only due to larger proportion of earning members and the majority of them are employed in non-farm activities on comparatively high wage whereas family member of households with even small piece of land do not prefer to work as labour, resulting less income flow and higher level of poverty among them. Various agro-economic and social factors are responsible for poverty. The three key determinants that help the household in keeping away from poverty are education, number of earning and family size. The education enhances the skill, chances of getting remunerative employment and increasing labour productivity which lead to higher income and decline in poverty. Larger proportion of earning members in the household also helps increasing income flow whereas smaller size of family leads to comparatively less expenses and more income to the household hence low level of poverty. These findings of poverty determinants call for establishment of effective educational and training infrastructure and streamlining of their functioning in rural area. The family welfare programme needs to be strengthened for population control since smaller family is likely to be away from poverty.

Suggested Citation

  • Singh, K.M. & Singh, R.K.P. & Kumar, Abhay & Meena, M.S. & Jha, A.K. & Kumar, Anjani, 2012. "Dimensions of Rural Poverty in Bihar: A Village Level Study," MPRA Paper 44815, University Library of Munich, Germany, revised 17 Nov 2012.
  • Handle: RePEc:pra:mprapa:44815
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/44815/1/MPRA_paper_44815.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    2. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    3. Meena, M. S. & Singh, K. M. & Jha, A. K. & Singh, R. K. P. & Kumar, Abhay & Kumar, Chunchun, 2011. "Socio-Economic Determinants of Rural Poverty: An Empirical Exploration of Jharkhand State, India," 2011 ASAE 7th International Conference, October 13-15, Hanoi, Vietnam 290426, Asian Society of Agricultural Economists (ASAE).
    4. Singh, K. M. & Singh, R. K. P. & Meena, M. S. & Kumar, Abhay, 2011. "Dimensions of Poverty in Bihar," 2011 ASAE 7th International Conference, October 13-15, Hanoi, Vietnam 290427, Asian Society of Agricultural Economists (ASAE).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Singh, K.M. & Singh, R.K.P. & Meena, M.S. & Kumar, Abhay & Jha, A.K. & Kumar, Anjani, 2012. "Rural Poverty in Jharkhand: An Empirical Exploration of Socioeconomic determinants," MPRA Paper 44811, University Library of Munich, Germany, revised 15 Dec 2012.
    2. Chakravarty, Satya R. & Deutsch, Joseph & Silber, Jacques, 2008. "On the Watts Multidimensional Poverty Index and its Decomposition," World Development, Elsevier, vol. 36(6), pages 1067-1077, June.
    3. Oihana Aristondo & Casilda Lasso De La Vega & Ana Urrutia, 2010. "A New Multiplicative Decomposition For The Foster–Greer–Thorbecke Poverty Indices," Bulletin of Economic Research, Wiley Blackwell, vol. 62(3), pages 259-267, July.
    4. Borooah, Vani, 2007. "Measuring economic inequality: deprivation, economising and possessing," MPRA Paper 19422, University Library of Munich, Germany.
    5. Heindl, Peter & Schuessler, Rudolf, 2015. "Dynamic properties of energy affordability measures," Energy Policy, Elsevier, vol. 86(C), pages 123-132.
    6. Belhadj, Besma & Limam, Mohamed, 2012. "Unidimensional and multidimensional fuzzy poverty measures: New approach," Economic Modelling, Elsevier, vol. 29(4), pages 995-1002.
    7. repec:pru:wpaper:8 is not listed on IDEAS
    8. Francisco J. Ciocchini & Gabriel Molteni, 2008. "Medidas alternativas de la pobreza en el Gran Buenos Aires, 1995-2006," Ensayos de Política Económica, Departamento de Investigación Francisco Valsecchi, Facultad de Ciencias Económicas, Pontificia Universidad Católica Argentina., vol. 1(2), pages 46-82, Octubre.
    9. Duclos, Jean-Yves & Araar, Abdelkrim & Giles, John, 2010. "Chronic and transient poverty: Measurement and estimation, with evidence from China," Journal of Development Economics, Elsevier, vol. 91(2), pages 266-277, March.
    10. Mathias KUEPIE & Eric Patrick FEUBI PAMEN, 2017. "An Application of the Alkire-Foster’s Multidimensional Poverty Index to Data from Madagascar: Taking Into Account the Dimensions of Employment and Gender Inequality," Working Paper 6ca04615-044d-41a0-8737-9, Agence française de développement.
    11. Temple, Jonathan & Ying, Huikang, 2014. "Life During Structural Transformation," CEPR Discussion Papers 10297, C.E.P.R. Discussion Papers.
    12. Gaurav Datt & Martin Ravallion, 1998. "Farm productivity and rural poverty in India," Journal of Development Studies, Taylor & Francis Journals, vol. 34(4), pages 62-85.
    13. Vito Peragine & Ernesto Savaglio & Stefano Vannucci, 2008. "Poverty Rankings of Opportunity Profiles," Department of Economics University of Siena 548, Department of Economics, University of Siena.
    14. Constantine Angyridis & Brennan Scott Thompson, 2016. "Negative income taxes, inequality and poverty," Canadian Journal of Economics, Canadian Economics Association, vol. 49(3), pages 1016-1034, August.
    15. Ye, Yuxiang & Koch, Steven F., 2021. "Measuring energy poverty in South Africa based on household required energy consumption," Energy Economics, Elsevier, vol. 103(C).
    16. Benoit Decerf, 2021. "Combining absolute and relative poverty: income poverty measurement with two poverty lines," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 56(2), pages 325-362, February.
    17. Brunori, Paolo & Ferreira, Francisco & Lugo, Maria Ana & Peragine, Vito, 2013. "Opportunity-sensitive poverty measurement," Policy Research Working Paper Series 6728, The World Bank.
    18. Jean-Michel Hourriez & Bernard Legris, 1998. "L'approche monétaire de la pauvreté : méthodologie et résultats," Économie et Statistique, Programme National Persée, vol. 308(1), pages 35-63.
    19. Ragdad Cani Miranti, 2021. "Is regional poverty converging across Indonesian districts? A distribution dynamics and spatial econometric approach," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 851-883, October.
    20. M. Azhar Hussain & Nikolaj Siersbæk & Lars Peter Østerdal, 2020. "Multidimensional welfare comparisons of EU member states before, during, and after the financial crisis: a dominance approach," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(4), pages 645-686, December.
    21. David Madden, 2011. "Health and income poverty in Ireland, 2003–2006," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(1), pages 23-33, March.

    More about this item

    Keywords

    Rural poverty; Determinants of poverty; Bihar; Probit model;
    All these keywords.

    JEL classification:

    • H8 - Public Economics - - Miscellaneous Issues
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:44815. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.