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

Author

Listed:
  • 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, Ad libros publications inc., 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 of Labor Economics (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. Janneke Pieters, 2011. "Education and Household Inequality Change: A Decomposition Analysis for India," Journal of Development Studies, Taylor & Francis Journals, vol. 47(12), pages 1909-1924.
    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. Mario Negre, 2010. "Concepts and Operationalization of Pro-Poor Growth," WIDER Working Paper Series wp-2010-047, World Institute for Development Economic Research (UNU-WIDER).
    6. 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.
    7. Nie, Peng & Ding, Lanlin & Sousa-Poza, Alfonso, 2019. "Obesity inequality and the changing shape of the bodyweight distribution in China," China Economic Review, Elsevier, vol. 58(C).
    8. repec:dgr:rugggd:gd-114 is not listed on IDEAS
    9. 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.
    10. Anand Sahasranaman, 2020. "Long term dynamics of poverty transitions in India," Papers 2010.06954, arXiv.org.
    11. Dhongde, Shatakshee, 2017. "Measuring Segregation of the Poor: Evidence from India," World Development, Elsevier, vol. 89(C), pages 111-123.
    12. L.Vachya & B.Kamaiah, 2015. "Microfinance Impact on Socio-Economic Empowerment: A special Reference to Andhra Pradesh," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 4(1), pages 51-69, January.
    13. repec:ebl:ecbull:v:9:y:2008:i:14:p:1-7 is not listed on IDEAS
    14. Petia Topalova, 2008. "India: Is the Rising Tide Lifting All Boats?," IMF Working Papers 2008/054, International Monetary Fund.
    15. Negre, Mario, 2010. "Concepts and Operationalization of Pro-Poor Growth," WIDER Working Paper Series 047, World Institute for Development Economic Research (UNU-WIDER).
    16. 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.
    17. Shatakshee Dhongde, 2004. "Decomposing Spatial Differences in Poverty in India," WIDER Working Paper Series RP2004-53, World Institute for Development Economic Research (UNU-WIDER).
    18. Anand Sahasranaman & Henrik Jeldtoft Jensen, 2021. "Dynamics of reallocation within India’s income distribution," Indian Economic Review, Springer, vol. 56(1), pages 1-23, June.
    19. Ram Singh, 2022. "Do the Wealthy Underreport their Income? Analysing Relationship between Wealth and Reported Income in India," Working papers 331, Centre for Development Economics, Delhi School of Economics.
    20. 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;
    All these keywords.

    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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