Inequality Among Bpl Families In Aonla Tehsil Economics Essay Example
Inequality Among Bpl Families In Aonla Tehsil Economics Essay Example

Inequality Among Bpl Families In Aonla Tehsil Economics Essay Example

Available Only on StudyHippo
  • Pages: 6 (3105 words)
  • Published: September 30, 2017
  • Type: Essay
Text preview

Inequality Among BPL Families: An Evidence FROM Regression based Inequality decomposition

The present survey focuses on the BPL households in Aonla Tehsil of Bareilly territory of Uttar Pradesh. This survey is based on a study conducted by the research worker in Aonla Tehsil. The major aims of the survey are to cognize the lodging features, income-consumption form and consciousness every bit good as benefits from the selected anti-poverty programmes related to the BPL households. The survey covers 180 BPL households from 11 small towns of Aonla Tehsil. There are three blocks in Aonla Tehsil and 60 caput of families have been selected for interview from each block. The empirical survey reveals a really interesting fact that per month norm household income is less than the per month norm household outgo among BPL households in the survey country. It is deserving adverting here that more than two 3rd of the family outgo is on nutrient ingestion. Most of the respondents had consciousness about the selected poorness relief programmes but they failed to avail benefits from these programmes.

Cardinal words: Family, Anti-Poverty Programmes, Consumption, Income Distribution

JEL Classification: R2, I38, E2, E24

Inequality Among BPL Families: An grounds from Regression based Inequality decomposition

Alok Kumar Pandey*

Annapurna Dixit*

Household income and outgo are two direct pecuniary steps used in measuring the economic wellbeing of a population. In the context of the growing public presentation during last two decennaries, economic experts and policymakers have become interested in the tendencies in regional inequality in term of household income and outgo during this period. Rising regional inequality can mak


e economic, societal and political jobs for any state. For the Indian economic system, it has serious branching for the continuance of the reform procedure. Hence, it is of extreme importance to understand the inequality in footings of family income and outgo on consumer durable goodss, lodging quality and family comfortss and socio economic features of the family.

Family outgos as they result from budget restrictions at the one manus and picks based on demands, demand, penchants etc. on the other may be regarded as manifestations of economic and societal inequalities every bit good as cultural differences and societal differentiations. At a most general degree it may supply penetrations into general ingestion behavior as a major beginning of human wellbeing and several picks and limitations.

Investigating household income and outgos forms is considered to be cardinal for the monitoring and account of inequalities and alterations in stuff life criterions and general public assistance. Apart from income or ingestion which are typically used to specify whether a family is below poorness line there are a figure of other economic features that affect poorness, most of import family supports and demographic and socio economic sciences features.

Some research workers have undertaken multidimensional nature of inequality and its debatable theoretical and practical issues in their surveies ( Atkinson and Bourguignon 1982, Bourguignon and Chakravarty 2003, Dowrick et Al. 2003, Maasoumi 1999, Phelan 2002 ) . Analyzing inequality decomposition outgos and ingestion behavior of families besides seems to be an of import and promising scheme to widen and supplement mainstream attacks of analyzing inequality as a cardinal subject of sociological and

View entire sample
Join StudyHippo to see entire essay

economic research. Although there is a long history of research on forms of family outgos and their alterations across clip, which goes back to the nineteenth century and the celebrated work by Ernst Engel and others, these inquiries have attracted surprisingly small attending in recent old ages ( Blacklow and Ray 2000, Bogenhold and Fachinger 2000, Zaidi and Klass 2001, Dhawan-Biswal 2002, Meyer and Sullivan, ( 2003 ) , Kalwij and Salverda, ( 2004 ) Blow, Leicester and Oldfield ( 2004 ) Johnson, Smeeding and Torrey ( 2005, Brewer, Goodman, and Leicester 2006, Zhang, Xie and Zhou 2009 )

Regional inequality in India is now a affair of serious concern ( Diwakar, 2009 ) . It is good known that in a big economic system, different parts with different resource bases and gifts would hold a dissimilar growing way over clip ( Bhattacharya and Sakthivel, 2004 ) . In the recent period, a figure of surveies ( Bhattacharya & A ; Sakthivel 2004, Ahluwalia 2000 & A ; 2002, Nagaraj, Varoudakis & A ; Veganzous 1998, Rao, Shand & A ; Kalirajan 1999, Shand & A ; Bhide 2000 ) have observed that the regional inequality in India has widened, particularly during the 1990s.

The inequality decomposition refers that inequality is related to constitutional parts of the distribution, such as income subgroups, part, faith, etc. The issue of associating subgroup inequality degrees to overall inequality has been discussed in the figure of surveies ( Cowell 1980, Cowell and Kuga 1981, Bourguignon 1979, Shorrocks 1980 and 1984, Mukherjee and Shorrocks 1982, Das and Parikh 1982, Mishra and Parikh 1992, Morduch and Sicular 2002, and Hammill 2005 ) .

Surveies related with inequality decomposition in Indian society has been measured by utilizing standard divergence, Gini-coefficient, composing effects, existent and the nominal comparative disparity for statewise, regionwise with different informations set like assorted unit of ammunitions of NSS informations, SDP of indinan provinces etc. ( Bhattacharya and Mahalanobis 1967, Paul 1988, Jain and Tendulkar 1989, Datt and Ravallion 1990, Dubey and Gangopadhyay 1998, Deaton and Dreze 2002, Gaiha, Thapa, Imai and Kulkarni 2007, Dubey 2009, Singh 2010, Srivastava and Mohanty 2010, Cain, Rana, Rhoda and Tandon 2010, Pathak 2010 )

The National Human Development Report 2001 for India ( 2002 ) reveals huge differences in human development and poorness between the States of India in 1981. The study notes that `` At the province degree, there are broad disparities in the degree of human development. '' ( NHDR 2002, page 4 ) . The study besides notes that disparities amongst the States with regard to human poorness are rather dramatic. Socio-economic disparities across the parts and intra-regional disparities among different sections of the society have been the major board for following be aftering procedure in India since independency.

Despite a huge scope of poorness obliteration programmes and several steps adopted in this respect, even after more than 60 old ages of Independence the state of affairs is still really critical. In recent old ages, some important alterations have occurred in the poorness relief scheme. The Government of India has launched assorted programmes, such as NAREGA, MNAREGA, Integrated Rural

Development Programme ( IRDP ) , Training of Rural Youth for Self Employment ( TRYSEM ) , Development of Women and Children in Rural Area ( DWCRA ) , Wage Employment Programme, National Rural Employment Programme, Jawahar Rozgar Yojana, etc. , for the relief of poorness. Further, these programmes are now the duty of the local organic structures ( Panchayati Raj establishments ) that are expected to better their public presentation. But despite all the strict attempts, the coveted consequences could non be achieved and considerable degree of regional disparities remained in the society. The Structure Adjustment Programme of economic reforms since 1991 with stabilization and deregulating policies as their cardinal pieces seems to hold further widened the regional disparities. Sen 2002 justly observed that, `` the existent concern of the so called anti-globalization dissenters is certainly non globalisation per Se, for these protests are amongst the most seem to stem in big portion from the go oning wants and lifting disparities in degree of lifes that they see in current period of globalisation. Liberalisation had resulted in the rich going richer and the hapless, poorer. No State really got hapless in footings of falling per capita income but the interstate inequality surely increased[ 1 ]. The earnestness of the emerging acute regional instabilities has non yet received the public attending it deserves.

The Ministry of Rural Development conducts the Below Poverty Line ( BPL ) Census in the rural countries of the state in the beginning of each Five Year Plan period, through the State Governments, for designation of individuals populating below the poorness line. The methodological analysis and standards for designation of the BPL families in the rural countries are finalised taking into history the recommendations of an Expert Group constituted for the intent ( Sundaram 2003 ) .

The BPL Census was conducted in 2002, based on the recommendations of Expert Group, taking into history 13 scorable socio-economic parametric quantities including operational retention of land, lodging, vesture, nutrient, security, sanitation, ownership of consumer durable goodss, literacy, labour force, means of support, position of kids, type of liability, migration and the nature of aid preferred. Each family was ranked harmonizing to the entire mark obtained for categorization into 'poor ' and 'non-poor ' . In the present survey the BPL households are considered on the footing of BPL Census 2002.

In the visible radiation of above no any relevancy survey has been found for the testing of stationarity for the panel and clip series informations every bit good as proving of stationarity in the assorted steps of inequality Gini index, General Entropy and Atkinson indices.

Uttar Pradesh by and large divided into five major parts viz. Hill, Western, Central, Eastern and Bundelkhand has big socio-economic and cultural differences. Even these parts have their ain local idiom. The territory of Bareilly lying between Lat. 28 degree 1 ' and Long. 78 degree 58'k and 79 grade 47'E was one time the portion of antediluvian Panchala, which was bound by the river Gomati in the E, Yamuna in the West, Chambal in the South and on the North it approaches the Himalayan pes

hills. Entire population of the territory is 3618589 of which 2427139 is rural and 1191450 urban ( Census 2001 ) . Present survey is carried out in Aonla Tehsil of Bareilly territory, Uttar Pradesh. There are three blocks in Aonla Tehsil i.e. Alampur-Zafarabad, Ramnagar and Majhagawn ( Jila Shyankhayki Patrika, 2005 ) . The figure of families in Aonla Tehsil is 89,176 out of which 33,222 households ( about 38 % ) are Below Poverty Line ( BPL Census 2002 ) .

Aims of the Survey:

The major aim of the present survey is to cognize the inequality position of BPL households in footings income and outgo in Aonla Tehsil. It besides analyses the arrested development based inequality decomposition by utilizing assorted socioeconomic feature. The aims of the survey are to convey forth the lodging features, consumption-income form and consciousness towards the selected antipoverty programmes among the BPL households in the Aonla Tehsil

Data and Methodology:

In this survey 180 BPL households have been covered from 11 small towns of Aonla Tehsil. There are three blocks in Aonla Tehsil and 60 caput of families have been selected for interview from each block. A family is developed by specifying as a group of individuals who normally live together and take nutrient from common kitchen. In the present survey an effort has been made to show a brief description of the income distribution of the selected families and caput of family. Household income is the income received by all the members of the family from assorted beginnings like agribusiness, agricultural worker, business/shop, day-to-day workers, caste related worker, homemaker ( pension and other ) , homemaker & A ; agricultural worker ( for female merely ) , imploring and others. The information on family outgo was collected under outgo on nutrient points and outgo on other than nutrient points. For the outgo on nutrient points one month mention period is considered. But for other than nutrient outgo one twelvemonth mention period is taken. The survey takes in to account the information related to awareness about the assorted poorness relief strategies every bit good as benefits availed by the families. Data aggregation was carried out from November 2006 to January 2007 at certain intervals. Relevant information on the assorted facets was collected on the footing of pre-designed interview agenda. The respondents in the survey are caput of the household. The survey takes in to account the demographic characteristics i.e. age, gender and instruction of the respondents. Socio-economic features like caste faith, types of household, assets in the family, farm animal every bit good as beginning of their income and income received by these beginnings asked by the respondents. Knowledge of the selected strategy related to anti poorness programme and benefit from these strategies has been straight asked by the respondents.

In the present survey the odds ratio for benefit through assorted authorities policies related to poorness obliteration has been calculated in regard to different demographic and socio economic variables like gender, age, and instruction of the caput of family, faith, caste, type of household and income of the family.

In order to gauge the odds ratio from the logistic theoretical

account ( Gujrati 2003 ) , we proceed in the undermentioned mode. If Zi scopes from -i?? to +i?? , Pi ranges between 0 and 1 and Pi is non-linearly related to Zi ( i.e. Eleven ) . The Logit theoretical account is specified as:

Findingss of the Survey:

Table 1 represents the features of the caput of family. Majority of the families have a male caput. The caput of about all the families ( 89.4 per centum ) is a male member. The average age of the caput of families comes out to be 40 old ages. About 85.6 per centum of the families belong to Hindu faith and 14.4 per centum have faith in Muslim faith. There is a big fluctuation in this phenomenon harmonizing to caste ; 58.3 per centum BPL households belong to Other Backward Classes, 27.2 per centum to Schedule Caste and about 15 per centum to General Category. Working as agricultural labor is the chief business of the caput of family. Merely 30 percent caput of families are literate and among them barely 2.0 per centum are educated up to 10th criterion and above. Majority of the households about 86 per centum are atomic. The mean size of BPL households in the surveyed country is 4.8.

The lodging installations in the surveyed country have been presented in Table 2. Out of 180 families about 38 per centum of the households live in houses that are kachcha. Around three per centum BPL households are stateless as they are merely holding shed of polyethylene. The chief beginning of illuming among 94 per centum of BPL households in the survey countries is Dibbi ( hand-crafted kerosine lamp ) this is because of their low income. Crop-residue/wood/kanda is the most common fuel used for cookery by 99 per centum of the families. Assetss in the families are presented in Table 3. About two per centum of the families have stove and one per centum families have no cover or comforter installations.

Table 4 depicts income and outgo of the families. In this study income of the family has been calculated as entire income earned by all the household members within one month. The consequences reveal that the mean per month family income is Rs. 1383. The entire monthly income of 37 per centum of the families is below Rs. 500. The per capita income is estimated by spliting the income of all the families to the estimated figure of family population. Harmonizing to the study norm per capita income is Rs. 323 per month. The information related to family outgo has been divided into two parts. Part one consist of outgo on nutrient points in the old month and 2nd portion is related with one-year outgo on instruction, wellness, fabrics and others. For ciphering monthly outgo of the family 2nd portion has been converted in to the monthly outgo and added in the first portion of the outgo ( i.e. outgo on nutrient points ) . The study consequences reveal that the average family outgo per month is Rs. 1517 of that Rs. 1103 is spent on nutrient, which is around 73

per centum of the entire outgo ( Table 4 ) .

Table 5 shows consciousness among BPL households towards the anti poorness programmes. It shows that 88.9 percent caput of families are cognizant of Indira Awas Yojana and 88.3 per centum are cognizant of Pension Schemes. Awareness about Jawahar Gram Samriddhi Yojna is found merely among around 60.0 per centum respondents. Benefits from these anti poorness programmes are presented in Table 5. Swarnajayanti Gram Swarojgar Yojna ( SGSY ) is the most effectual strategy in the survey country and about 20 percent caput of the families are member of Self Help Groups ( SHGs ) under SGSY. Merely 7.2 per centum families get benefited from the Indira Awas Yojana and five per centum families reported holding employment under Wage Employment Scheme.

Table 6 depicts the odds ratio for benefit from the authorities poorness obliteration programme and assorted socio economic indexs. The consequence shows that the household which has a female caput of family is holding 2.5 times more opportunities of acquiring benefits from the anti poorness programmes than the male caput of the families. Age has a important impact on benefits from poorness obliteration programmes. The opportunity of acquiring benefits from any of the anti poorness programmes is greater i.e. 8.57 times and 13.23 times severally in the age group of 30-59 and above 60 in comparing to the less than 30 old ages of age group. The Muslim households have 2.9 times more opportunities to avail benefits from anti poorness programmes in comparing to Hindu households. On the other manus, in those BPL households holding literate caput of families the opportunities of acquiring benefits are 14 per centum more in comparing to the households with illiterate caput of families in Aonla Tehsil. The BPL households with less than mean income have 77 per centum more opportunities of availing benefits from the poorness obliteration strategies in relation to the households with more than mean income in the Tehsil. Similarly, in instance of norm per capita income, the opportunities of benefits for the households below mean per capita income are 46 per centum more in comparing with above norm per capita income households.


Empirical consequences reveal that BPL households in the Tehisl are deprived of basic comfortss like puccka houses, electricity and safe imbibing H2O. In the Tehsil, BPL households are besides missing the installations of kitchen, lavatory and drainage system in their houses.

The study consequences are really uncovering as the mean per month family outgo is higher than the mean per month household income of the BPL households in the Tehsil, and a big proportion of their outgo is on ingestion ( nutrient points ) which is 73.0 per centum of the entire outgo. The mean entire household income in the survey country is estimated at Rs. 1383 and the mean per capita income is Rs. 323 per month. This income does non run into the globally recognized figure under the millenary development ends of $ 1 per twenty-four hours ( Duggal 2007 ) . It is deserving adverting here that the monthly norm per capita outgo of Rs. 351 is higher than

the monthly norm per capita income of Rs. 323 and this spread is met by the adoption from relations, money loaners, large husbandmans etc. In the survey country most of the BPL households are cognizant of the anti poorness programmes but they fail to avail benefits from them as these are transferred towards the unworthy people because of deficiency of proper execution. The consequences besides reveal that the literate people get more benefits than the illiterate people. Government should pay some more attending on educating them in coordination with the NGOs so that they could understand the importance of these poverty relief programmes and could avail the benefits. The demand is to heighten the sum given under different strategies. It was besides found in the survey country that the sudden decease of the caput of the family affects the economic status of the BPL households adversely. Therefore, the Government should originate insurance policies particularly for BPL households in such a mode that premium sum is paid by the authorities. This could be a positive measure towards poorness riddance.