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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

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.

Suggested Citation

  • Kurosaki, Takashi, 2012. "Urban Transportation Infrastructure and Poverty Reduction: Delhi Metro's Impact on the Cycle Rickshaw Rental Market," PRIMCED Discussion Paper Series 24, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:primdp:24
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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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    References listed on IDEAS

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    1. 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.
    2. 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 1-28, July.
    3. Robert Jensen, 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 879-924.
    4. 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).
    5. Takashi Kurosaki & Yasuyuki Sawada & Asit Banerji & S. N. Mishra, 2007. "Rural-Urban Migration and Urban Poverty: Socio-Economic Profiles of Rickshaw Pullers and Owner-Contractors in North-East Delhi," Hi-Stat Discussion Paper Series d06-205, Institute of Economic Research, Hitotsubashi University.
    6. Dave Donaldson, 2010. "Railroads of the Raj: Estimating the Impact of Transportation Infrastructure," NBER Working Papers 16487, National Bureau of Economic Research, Inc.
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    1. repec:eee:wodepe:v:7-8:y:2017:i::p:22-27 is not listed on IDEAS

    More about this item

    Keywords

    urban poverty; migration; infrastructure; informal sector;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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