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A Village-level Study of Poverty in Bihar: Using panel data Approach

Author

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  • Singh, Krishna M.
  • Singh, R.K.P.
  • Meena, M.S.
  • Kumar, Abhay
  • Kumar, Anjani

Abstract

In India, Bihar is amongst poorest state, with poverty incidence of 42.6%. Bihar constitutes about 3% of national geographical area, but supports, 8 % of its population. The state is characterized as most backward state of India. In Bihar there has been a slow decline in the incidence of poverty, from 62 % in early 1980s to 42 % at the end of 20th century. And it remained almost constant up to 2005-2006. There has not been any significant influence of the agricultural development and poverty alleviation programmes on reduction of poverty. The present study has been planned to understand the socio-economics status of rural households, which have association with poverty in Bihar. The study is based on data obtained from 160 households, through panel interview under the project entitled, “Tracking changes in rural poverty in villages and household economies of South Asia”. Analysis of data revealed that more than 90% of households in studied villages had less than 1 hectare of land, and per capita land worked out to be about 0.048 ha. Agriculture is still the main economic activity and land is the main asset, but 74% of households are either landless or own less than 0.20 ha of land, which can not sustain a family of 5-8 members. Per capita land is not only low, but there is skewed distribution of land in villages under study. About 75% of households are either landless or sub-marginal farmers, who own only 8.5% of land of the villages studied. Livestock is the second most important source of livelihood, and the distribution of livestock is less skewed than land. Hence it may be said that, the promotion of livestock production will help reducing poverty. Due to slow growth in agriculture and launching of various development programmes, including MNREGA, occupational profile of rural households has changed. In villages under study, more than 50% of workers got employment in non-farm sector and became the main source of livelihood for poor households. Migration has emerged as one of the important survival strategies in Bihar. It was observed that at least one family member of 50 % of households, migrated for gainful employment, either to nearby town or outside the state and remittances sent by migrants is utilized to support the livelihood.

Suggested Citation

  • Singh, Krishna M. & Singh, R.K.P. & Meena, M.S. & Kumar, Abhay & Kumar, Anjani, 2011. "A Village-level Study of Poverty in Bihar: Using panel data Approach," MPRA Paper 45232, University Library of Munich, Germany, revised 23 Oct 2011.
  • Handle: RePEc:pra:mprapa:45232
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    File URL: https://mpra.ub.uni-muenchen.de/45232/1/MPRA_paper_45232.pdf
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    References listed on IDEAS

    as
    1. Kumari, Veena & Singh, R.K.P., 2009. "Fragile Human Capital Causes Poverty in North Bihar: Some Empirical Evidences," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 22(1).
    2. Martin Ravallion & Gaurav Datt, 1996. "India's Checkered History in Fight against Poverty: Are There Lessons for the Future?," Monash Economics Working Papers archive-33, Monash University, Department of Economics.
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    Cited by:

    1. Gupta, J.J. & Singh, K.M. & Bhatt, B.P. & Dey, A., 2014. "A Diagnostic Study on Livestock Production System in Eastern Region of India," MPRA Paper 59517, University Library of Munich, Germany, revised 14 Feb 2014.

    More about this item

    Keywords

    socio-economic dimension; livelihoods; rural poverty;

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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