Geospatial Multidimensional Poverty Gap in India: A rural and urban decomposition analysis

Pallavi Gupta

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the geographical distribution of multidimensional poverty in rural and urban India for the year 2021, utilising secondary data sourced from the NITI Aayog report 2021 based on the NFHS-4 dataset. The 2021 MPI, based on Alkire and Foster methodology, encompasses three dimensions—health, education, and standard of living—comprising twelve indicators. An in-depth analysis of interstate deprivation across diverse indicators within the rural and urban Multidimensional Poverty Index (MPI) highlights heightened levels of deprivation in economically challenged states like Madhya Pradesh, Bihar, Uttar Pradesh, and Jharkhand. A comprehensive decomposition analysis has been undertaken to identify the principal contributors to multidimensional poverty. The outcomes emphasise the critical role of health as a pivotal dimension, with nutrition emerging as the foremost factor influencing the overall MPI in both rural and urban contexts. These findings underscore the necessity for targeted policies aimed at poverty eradication, with a specific focus on strategic interventions in health and nutrition. The insights offer valuable perspectives for development planners and policymakers, contributing to a nuanced understanding of the intricate patterns of multidimensional poverty across Indian states.

Keywords: multidimensional poverty index (MPI); rural and urban poverty; spatial pattern of poverty; deprivation; decomposition of poverty; NFHS-4. (search for similar items in EconPapers)
JEL-codes: I32 I38 J11 (search for similar items in EconPapers)
Date: 2023-10-07, Revised 2023-12-02
New Economics Papers: this item is included in nep-ure
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Published in The Indian Economic Journal, published by Indian Economic Association 1 Special Issue December 2023.1(2023): pp. 48-56

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