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Measurement of Multidimensional Poverty in India: A State-level Analysis

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  • Sabyasachi Tripathi
  • Komali Yenneti

Abstract

This article measures Multidimensional Poverty Index (MPI) in India using National Sample Survey (NSS) data on “Consumption Expenditure†for the period 2004–2005 and 2011–2012, adopting Alkire and Foster’s (2011, Journal of Public Economics , vol. 95, pp. 476–487) methodology. It considers three main indicators, namely standard of living, education and income at the level of households or persons. The results show that multidimensional poverty head count has declined from 62.2 per cent in 2004–2005 to 38.4 per cent in 2011–2012. However, separate rural and urban regional analysis clearly indicates a sharp decline in rural poverty compared to urban poverty reduction. Lack of education of the household members made the highest contribution to poverty, followed by income and standard of living in India. A state-level analysis shows that Jharkhand, Uttar Pradesh, Rajasthan, Orissa, Bihar, Chhattisgarh and Arunachal Pradesh have a higher poverty head count ratio, while Kerala, Mizoram, Nagaland, Punjab, Himachal Pradesh and Haryana have a lower poverty rate.

Suggested Citation

  • Sabyasachi Tripathi & Komali Yenneti, 2020. "Measurement of Multidimensional Poverty in India: A State-level Analysis," Indian Journal of Human Development, , vol. 14(2), pages 257-274, August.
    • Handle: RePEc:sae:inddev:v:14:y:2020:i:2:p:257-274
    DOI: 10.1177/0973703020944763
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    1. Sabina Alkire, Maria Emma Santos, 2010. "Acute Multidimensional Poverty: A New Index for Developing Countries," OPHI Working Papers 38, Queen Elizabeth House, University of Oxford.
    2. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7), pages 476-487.
    3. Dehury, Bidyadhar & Mohanty, Sanjay K., 2015. "Regional estimates of multidimensional poverty in India," Economics Discussion Papers 2015-34, Kiel Institute for the World Economy (IfW Kiel).
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    6. Daniele Pacifico & Felix Poege, 2017. "Estimating measures of multidimensional poverty with Stata," Stata Journal, StataCorp LP, vol. 17(3), pages 687-703, September.
    7. Dehury, Bidyadhar & Mohanty, Sanjay K., 2015. "Regional estimates of multidimensional poverty in India," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-35.
    8. Sanjay K Mohanty, 2011. "Multidimensional Poverty and Child Survival in India," PLOS ONE, Public Library of Science, vol. 6(10), pages 1-14, October.
    9. Daniele Pacifico & Felix Poege, 2016. "Estimating measures of multidimensional poverty in Stata," Center for the Analysis of Public Policies (CAPP) 0131, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    10. Sabina Alkire, Suman Seth, 2008. "Measuring Multidimensional Poverty in India: A New Proposal," OPHI Working Papers 15, Queen Elizabeth House, University of Oxford.
    11. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(1), pages 69-93.
    12. A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 51-65, April.
    13. Vijaya, Ramya M. & Lahoti, Rahul & Swaminathan, Hema, 2014. "Moving from the Household to the Individual: Multidimensional Poverty Analysis," World Development, Elsevier, vol. 59(C), pages 70-81.
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    Cited by:

    1. Pinaki Das & Bibek Paria & Shama Firdaush, 2021. "Juxtaposing Consumption Poverty and Multidimensional Poverty: A Study in Indian Context," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 469-501, January.
    2. Binayak Kandapan & Jalandhar Pradhan & Itishree Pradhan, 2023. "An Individual-Specific Approach to Multidimensional Child Poverty in India: a Study of Regional Disparities," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 16(5), pages 2075-2105, October.
    3. M. R. Narayana, 2021. "Economic inequality by age and its implications for inequity for living generations in India: evidence based on National Transfer Accounts," Asia-Pacific Journal of Regional Science, Springer, vol. 5(2), pages 373-396, June.
    4. Venugopal Mothkoor & Nina Badgaiyan, 2021. "Estimates of multidimensional poverty for India using NSSO-71 and -75," WIDER Working Paper Series wp-2021-1, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Consumption expenditure; multidimensional poverty; poverty indices; India;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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