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Measuring the Impact of Growth and Income Distribution on Poverty in India

Author

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  • Shatakshee Dhongde

    () (Rochester Institute of Technology)

Abstract

Since the economic reforms of the early 1990s, the Indian economy witnessed a rapid rise in the mean income level, and, simultaneously, changes in the distribution of income. This study tries to capture how these changes affected poverty levels across major states in India. Total change in poverty is decomposed into the changes due to a rise in the mean income level and due to changes in the distribution of income. It is observed that, in India, rapid growth led to a significant decline in poverty though changes in the distribution of income which adversely affected the poor.

Suggested Citation

  • Shatakshee Dhongde, 2007. "Measuring the Impact of Growth and Income Distribution on Poverty in India," Journal of Income Distribution, Journal of Income Distribution, vol. 16(2), pages 25-48, June.
  • Handle: RePEc:jid:journl:y:2007:v:16:i:2:p:25-48
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    Citations

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    Cited by:

    1. Heshmati, Almas, 2004. "A Review of Decomposition of Income Inequality," IZA Discussion Papers 1221, Institute for the Study of Labor (IZA).
    2. Florent Bresson, 2008. "The estimation of the growth and redistribution components of changes in poverty: a reassessment," Economics Bulletin, AccessEcon, vol. 9(14), pages 1-7.
    3. Pieters, Janneke, 2010. "Education and household inequality change: a decomposition analysis for India," GGDC Research Memorandum GD-114, Groningen Growth and Development Centre, University of Groningen.
    4. David E. Sahn, 2012. "Health Inequality across Populations of Individuals," African Development Review, African Development Bank, vol. 24(4), pages 316-326, December.
    5. David Sahn, 2009. "Weights on the rise: where and for whom?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(4), pages 351-370, December.
    6. repec:dgr:rugggd:gd-114 is not listed on IDEAS
    7. Pieters, Janneke, 2010. "Growth and Inequality in India: Analysis of an Extended Social Accounting Matrix," World Development, Elsevier, vol. 38(3), pages 270-281, March.
    8. Dhongde, Shatakshee, 2017. "Measuring Segregation of the Poor: Evidence from India," World Development, Elsevier, vol. 89(C), pages 111-123.
    9. repec:ebl:ecbull:v:9:y:2008:i:14:p:1-7 is not listed on IDEAS
    10. Negre, Mario, 2010. "Concepts and Operationalization of Pro-Poor Growth," WIDER Working Paper Series 047, World Institute for Development Economic Research (UNU-WIDER).
    11. David Sahn & Stephen Younger, 2005. "Improvements in children’s health: Does inequality matter?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 3(2), pages 125-143, August.
    12. Dhongde, Shatakshee, 2004. "Decomposing Spatial Differences in Poverty in India," WIDER Working Paper Series 053, World Institute for Development Economic Research (UNU-WIDER).
    13. David E. Sahn & Stephen D. Younger, 2006. "Changes in inequality and poverty in Latin America: Looking beyond income to health and education," Journal of Applied Economics, Universidad del CEMA, vol. 9, pages 215-234, November.

    More about this item

    Keywords

    growth; income distribution; poverty; decomposition; India;

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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