Social Indicators Research

, Volume 128, Issue 3, pp 957–979 | Cite as

Is Poverty Stochastic or Structural in Nature? Evidence from Rural India

Article

Abstract

The rationale of this study is to bring in a new area of poverty measurement based on household’s access to basic assets from across Indian States. The major drawback of the average income based measure of poverty is that it is unable to distinguish between the structural and stochastic nature of poverty. This paper applies the asset based framework to poverty to distinguish the relationship between structural and stochastic poverty. The paper has used data from the India Human Development Survey 2005. The results indicate the importance of asset formation for long term poverty reduction. There is a need for targeting pointed policies towards the identified structural poor and stochastic non-poor as they are the most vulnerable and need asset building.

Keywords

Asset poverty Income poverty Structural poor Stochastic poor 

JEL Classification

I32 I38 C21 C24 R11 R58 

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Copyright information

© Springer Science+Business Media Dordrecht 2015

Authors and Affiliations

  1. 1.Senior Research Associate at Institute for Human DevelopmentNew DelhiIndia
  2. 2.Associate Professor at Institute for Financial Management and ResearchChennaiIndia

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