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Regional estimates of multidimensional poverty in India

Author

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  • Dehury, Bidyadhar
  • Mohanty, Sanjay K.

Abstract

Using unit data from the Indian Human Development Survey (IHDS), 2004-05, this paper estimates and decompose the multidimensional poverty dynamics in 84 natural regions of India. Multidimensional poverty is measured in the dimensions of health, knowledge, income, employment and household environment using ten indicators and Alkire-Foster methodology. The unique contributions of the paper are inclusion of a direct economic variable (consumption expenditure) to quantify the living standard dimension, decomposition of MPI across the dimensions and the indicators and provide estimates at sub-national level. Results indicate that about half of India's population are multidimensional poor with large regional variations. More than 70% of the population are multidimensional poor in the Mahanadi Basin, the southern region of Chhattisgarh and the Vindhya region of Madhya Pradesh, while it is less than 10% in the coastal regions of Maharashtra, Delhi, Goa, the mountainous region of Jammu and Kashmir, the Hills region and Plains region of Manipur, Puducherry and Sikkim. The decomposition of MPI indicates that economic dimension alone accounts for about one-third of multidimensional poverty in most of the regions of India. Based on these analyses, the authors suggest target based interventions in the poor regions to reduce poverty and inequality, and achieve the Millennium Development Goals in India.

Suggested Citation

  • 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).
  • Handle: RePEc:zbw:ifwedp:201534
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    References listed on IDEAS

    as
    1. Yélé Batana, 2013. "Multidimensional Measurement of Poverty Among Women in Sub-Saharan Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(2), pages 337-362, June.
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    3. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 25-49, April.
    4. Manuela Coromaldi & Mariangela Zoli, 2012. "Deriving Multidimensional Poverty Indicators: Methodological Issues and an Empirical Analysis for Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 107(1), pages 37-54, May.
    5. Diego Battiston & Guillermo Cruces & Luis Lopez-Calva & Maria Lugo & Maria Santos, 2013. "Income and Beyond: Multidimensional Poverty in Six Latin American Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(2), pages 291-314, June.
    6. Alkire, Sabina & Seth, Suman, 2015. "Multidimensional Poverty Reduction in India between 1999 and 2006: Where and How?," World Development, Elsevier, vol. 72(C), pages 93-108.
    7. Calvo, Cesar, 2008. "Vulnerability to Multidimensional Poverty: Peru, 1998-2002," World Development, Elsevier, vol. 36(6), pages 1011-1020, June.
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    10. Maria Santos, 2013. "Tracking Poverty Reduction in Bhutan: Income Deprivation Alongside Deprivation in Other Sources of Happiness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(2), pages 259-290, June.
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    More about this item

    Keywords

    multidimensional poverty index; decomposition; regions; India;

    JEL classification:

    • I - Health, Education, and Welfare
    • J - Labor and Demographic Economics
    • Z - Other Special Topics

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