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Understanding Poverty among the Elderly in India: Implications for Social Pension Policy

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  • Pal, Sarmistha

    (University of Surrey)

  • Palacios, Robert

    (World Bank)

Abstract

The Government of India is implementing a new policy which dramatically increases funding for a cash transfer program targeted to the poor elderly. The expansion of this ‘social pension’ in terms of coverage and benefit levels is taking place with little understanding of poverty among India’s elderly or its determinants. This paper finds that households with elderly members do not have higher poverty rates than non-elderly households. This result is robust under various measures that take into account the size and composition of households. Separate evidence suggests that part of the explanation for this phenomenon is that the poor have higher mortality rates and are therefore underrepresented. This explanation has important implications for social pension policy and suggests that programs that reduce elderly mortality may actually increase the relative poverty levels of the elderly.

Suggested Citation

  • Pal, Sarmistha & Palacios, Robert, 2008. "Understanding Poverty among the Elderly in India: Implications for Social Pension Policy," IZA Discussion Papers 3431, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3431
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    Cited by:

    1. Kaushal, Neeraj, 2014. "How Public Pension affects Elderly Labor Supply and Well-being: Evidence from India," World Development, Elsevier, vol. 56(C), pages 214-225.
    2. Yoko Niimi & Charles Yuji Horioka, 2023. "Elderly poverty and its measurement," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 29, pages 307-315, Edward Elgar Publishing.
    3. Jan Priebe, 2017. "Old‐age Poverty in Indonesia: Measurement Issues and Living Arrangements," Development and Change, International Institute of Social Studies, vol. 48(6), pages 1362-1385, November.
    4. Akanksha Srivastava & Sanjay Mohanty, 2012. "Poverty Among Elderly in India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 109(3), pages 493-514, December.
    5. Ilke Onur & Malathi Velamuri, 2016. "A Life Course Perspective on Gender Differences in Cognitive Functioning in India," Journal of Human Capital, University of Chicago Press, vol. 10(4), pages 520-563.
    6. V. P. Sanitha & J. K. Parida & I. C. Awasthi, 2019. "Health Conditions, Medication and Hospitalisation Preferences of Elderly in Kerala," Indian Journal of Human Development, , vol. 13(3), pages 308-324, December.
    7. Hu, Shu & Das, Dhiman, 2019. "Quality of life among older adults in China and India: Does productive engagement help?," Social Science & Medicine, Elsevier, vol. 229(C), pages 144-153.
    8. Zhu, Alex Yue Feng & Ku, Inhoe & Chan, Wai Sum & Chou, Kee Lee, 2023. "Social pension reform and poverty among older people in Hong Kong: Triple difference estimations," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 105(C).
    9. Mitchell, Olivia S. & Mukherjee, Anita, 2017. "Assessing the demand for micropensions among India’s poor," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 30-40.
    10. Manoj K. Pandey, 2009. "On Ageing, Health and Poverty in Rural India," ASARC Working Papers 2009-14, The Australian National University, Australia South Asia Research Centre.
    11. Rajan, Irudaya., 2010. "Demographic ageing and employment in India," ILO Working Papers 994553253402676, International Labour Organization.
    12. Unnikrishnan, Vidhya & Imai, Katsushi S., 2020. "Does the old-age pension scheme improve household welfare? Evidence from India," World Development, Elsevier, vol. 134(C).
    13. Clemente Ávila‐Parra & David Escamilla‐Guerrero & Oscar Gálvez‐Soriano, 2024. "Minimum eligibility age for social pensions and household poverty: Evidence from Mexico," Economic Inquiry, Western Economic Association International, vol. 62(1), pages 175-196, January.
    14. repec:ilo:ilowps:455325 is not listed on IDEAS
    15. Social Policy and Population Section, Social Development Division, ESCAP., 2011. "Asia-Pacific Population Journal Volume 26, No. 2," Asia-Pacific Population Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 26(2), pages 1-92, June.
    16. Javier Olivera & Jhonatan Clausen, 2014. "Las características del adulto mayor peruano y las políticas de protección social," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, vol. 37(73), pages 75-113.
    17. Manoj K. Pandey, 2013. "Elderly's Health Shocks and Household's Ex-ante Poverty in India," ASARC Working Papers 2013-01, The Australian National University, Australia South Asia Research Centre.
    18. Pandey, Manoj K., 2009. "Poverty and disability among elderly in India: evidences from household survey," MPRA Paper 15580, University Library of Munich, Germany.
    19. Sanjay Mohanty & Rajesh Chauhan & Sumit Mazumdar & Akanksha Srivastava, 2014. "Out-of-pocket Expenditure on Health Care Among Elderly and Non-elderly Households in India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(3), pages 1137-1157, February.
    20. Sipei Xu & Jia Zhang, 2022. "Do Social Pensions Affect the Physical and Mental Health of Rural Children in China? An Intergenerational Care Perspective," IJERPH, MDPI, vol. 19(7), pages 1-25, March.
    21. P. Arokiasamy & David E. Bloom & Jinkook Lee & Kevin Feeney & Marija Ozolins, 2011. "Longitudinal Aging Study in India: Vision, Design, Implementation, and Some Early Results," PGDA Working Papers 8211, Program on the Global Demography of Aging.
    22. Pandey, Manoj K., 2009. "On ageing, health and poverty in rural India," MPRA Paper 15932, University Library of Munich, Germany.
    23. Manoj K. Pandey, 2009. "Poverty and Disability among Indian Elderly: Evidence from Household Survey," ASARC Working Papers 2009-09, The Australian National University, Australia South Asia Research Centre.
    24. Rama Malladi, 2022. "HARI: Characteristics of a new defined lifestyle (DL) retirement planning product," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(2), pages 147-163, June.

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    Keywords

    household demographic composition; adjusted poverty indices; elderly contribution; old age poverty; survivorship bias;
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