So why is Uttar Pradesh still poor? Poverty incidence and its correlates

Abstract

Purpose The purpose of this paper is to examine the regional profile of poverty in Uttar Pradesh, one of the most populated and impoverished states of India. It also identifies the factors underlying the inter-regional differences of poverty in the state. Design/methodology/approach Regional estimates have been evaluated by dividing the state into four economically classified regions (Western, Central, Southern, and Eastern), using the unit-level records of two latest available Consumption Expenditure Surveys of NSSO representing the period 2009-2010 and 2011-2012. Poverty has been defined by the latest available Rangarajan Expert Groups’ poverty line and aggregated in terms of headcount ratio and share of below poverty line population. Furthermore, to investigate the correlates of poverty, a survey-based logistic regression has been estimated specifically for each region and for both rural and urban areas. Findings Estimates reveal that though overall poverty in the state has declined, inter-regional poverty trends witness rise in the level of impoverishment particularly in urban Southern Region (SR), rural Eastern Region (ER), and in both rural and urban areas of Central Region. Nevertheless, the inter-regional disparity in poverty has observed a decline; it can further be eliminated if such high poverty reduction in urban ER and rural SR is sustained along with a similar progress in their impoverished counterparts. Originality/value The study recommends that poverty alleviating policies in the state should focus more on reducing the household size, development of socially excluded sub-groups (Scheduled Castes and Other Backward Classes), delivery of basic facilities (education and health care), and enhancement of employment prospects for casual laborers, with special emphasis on identified impoverished regions.