Poverty Changes Among Regions of Uttar Pradesh: A Decomposition Exercise During the 2000s

Abstract

This article examines the disparities in poverty among the regions of Uttar Pradesh during the 2000s through a poverty decomposition exercise. While the poverty reduction from 2004–2005 to 2011–2012 is faster in the northern and southern upper Ganga plain, the reduction is slower in the eastern and southern regions. The poverty headcount ratio increases for the central region. While eastern and southern regions have higher real Monthly Per Capita Expenditure (MPCE) growth than the state average, the lower poverty elasticity in these regions caused slower poverty reduction. The southern and northern upper Ganga plain have high poverty elasticity causing a faster poverty reduction. This study finds that Uttar Pradesh’s central region faces a critical problem with increased Head-Count Ratio and declining MPCE. The differential change in poverty among the regions has also been analysed using the occupational pattern and landholding distribution among regions, both rural and urban areas. JEL Codes: R32, R11, R12