FOOD PRICES,WAGES, AND WELFARE IN RURAL INDIA

With soaring food prices in recent years has come alarm about rising poverty in the developing world. Less appreciated, however, is that many of the poor in agricultural economies may benefit from higher wages. This study finds that wages for manual labor in rural India, both within and outside agriculture, rose faster in districts growing more of those crops with large producer price run‐ups over the 2004–2009 period. Based on a general equilibrium framework that accounts for such wage gains, rural households across the income spectrum are found, contrary to more conventional welfare analysis, to benefit from higher agricultural prices. (JEL Q17, Q18, F14)     

Minimum wages and poverty with income-sharing

Textbook analysis tells us that in a competitive labor market, the introduction of a minimum wage above the competitive equilibrium wage will cause unemployment. This paper makes three contributions to the basic theory of the minimum wage. First, we analyze the effects of a higher minimum wage in terms of poverty rather than in terms of unemployment. Second, we extend the standard textbook model to allow for income-sharing between employed and unemployed persons in society. Third, we extend the basic model to deal with income sharing within families. We find that there are situations in which a higher minimum wage raises poverty, others where it reduces poverty, and yet others in which poverty is unchanged. We characterize precisely how the poverty effect depends on four parameters: the degree of poverty aversion, the elasticity of labor demand, the ratio of the minimum wage to the poverty line, and the extent of income-sharing. Thus, shifting the perspective from unemployment to poverty leads to a considerable enrichment of the theory of the minimum wage.      

The Measurement of Multidimensional Poverty

Many authors have insisted on the necessity of defining poverty as a multidimensional concept rather than relying on income or consumption expenditures per capita. Yet, not much has actually been done to include the various dimensions of deprivation into the practical definition and measurement of poverty. Existing attempts along that direction consist of aggregating various attributes into a single index through some arbitrary function and defining a poverty line and associated poverty measures on the basis of that index. This is merely redefining more generally the concept of poverty, which then essentially remains a one dimensional concept. The present paper suggests that an alternative way to take into account the multi-dimensionality of poverty is to specify a poverty line for each dimension of poverty and to consider that a person is poor if he/she falls below at least one of these various lines. The paper then explores how to combine these various poverty lines and associated one-dimensional gaps into multidimensional poverty measures. An application of these measures to the rural population in Brazil is also given with poverty defined on income and education.     

The Role of Poverty and Chaos in the Development of Task Persistence Among Adolescents

Late adolescents (N = 256; M_age = 17.5) who spent a larger proportion of their early life in poverty exhibited less persistence when confronted by a challenging task. Greater chaos during early adolescence also predicted less task persistence at age 17. However, the effects of poverty were moderated by chaos such that if chaos levels were high during early adolescence, task persistence was uniformly lower among late adolescents, irrespective of childhood poverty. Only when chaos levels were relatively low did poverty matter for future task persistence. Furthermore, the interactive effects of chaos and early childhood poverty were independent of child ability, and of concurrent chaos and poverty.     

The Role of Non-Governmental Organizations for the Welfare of the Elderly

Summary

Since there has been a gradual increase in the population aged 60 and older, a developing country like India is unable to cope with the needs and problems of its aged populations. While the government continues its efforts to introduce programs for the elderly, the nongovernmental organizations (NGOs) have played a key role in bringing to the forefront the socioeconomic and health problems of older people in the society at large. This paper looks at the role of the NGOs through their various welfare activities and beneficial programs in carving out a place for the elderly in India. The work of HelpAge India is highlighted to examine how voluntary organizations have worked in the field of aging in India and made an impact on the lives of the senior citizens, especially those below the poverty line who are economically and socially deprived.     

Echoes of the present?: The politics and policy of child support 1945–70

SUMMARY. Child poverty has been an emotive and political issue for many years. This article sets out to look at the concepts of poverty—both absolute and relative. It then analyses government and political party attitudes to poverty from 1945–70, concluding that little has been achieved, particularly for the poorer and larger. families. In drawing out lessons for the present day, the paper argues that assumptions about the causes of poverty and ways of tackling it need to be questioned before progress can be made. This article is based on material contained in Michael McCarthy's 1986 book Campaigning for the Poor: CPAG and the Politics of Welfare. It appears here by permission of the publishers, Croom Helm.     

Urban politics and the study of urban poverty: Promising developments and future directions

The study of urban poverty is alive and well in sociology. The study of urban politics, by contrast, has stagnated. Though scholars agree that politics shapes the creation and durability of urban poverty, analytical connections between the two subfields are rarely made explicit. In this article, I make the case for a more integrated body of research. I first illustrate how urban poverty scholars implicitly discuss politics, and conversely, how urban politics scholars implicitly discuss poverty. I then highlight recent developments in the literature and propose two paths forward—by no means the only paths forward, but two ways to jumpstart greater conversation across both subfields. For the urban poverty literature, a focus on organizations can help scholars analyze political dynamics more directly. And for the urban politics literature, an emphasis on political mechanisms rather than overarching perspectives can disrupt the current theoretical malaise. These two moves can advance both literatures while drawing them closer together.     

Divine Development: Transnational Indian Religious Organizations in the United States and India

This article examines how Indian Americans’ religious organizations send not only financial remittances to India, but also social remittances that shape development ideologies. Comparing Indian‐American Hindu and Muslim organizations, I find both groups draw from their socioeconomic experiences in India and use their position as elite immigrants in the United States to identify and empower their respective religious constituencies in India and overturn different social relations (not just religious practices). Hindu Americans draw from their majority status in India to overturn India's lower position in the world system and support poverty alleviation efforts within a neoliberal development framework. Indian‐American Muslims draw from their poor status in India to overturn economic inequities within India by shifting India's development rhetoric from identity to class. Collective religious identities (expressed through organizations) not only affect the intensity of immigrants’ development efforts, but also their content and ideology. These findings urge us to fold transnational religious organizations into contemporary discussions on migration and development.     

Poverty,exclusion and child protection practice: the contribution of ‘the politics of recognition&respect’

The affective dimensions of poverty, including the impact of wider policy discourses and services that ‘other’ and shame people in poverty, are increasingly recognized. In response, Lister [(2013). Power, not Pity: Poverty and Human Rights. Ethics and Social Welfare, 7(2), 109–123] advocates for ‘a politics of recognition&respect’ that centralizes the voices, participation and lived experiences of those who live in poverty. This paper considers how applying Lister’s theory could improve child protection (CP) social work in England, from a human rights and social justice perspective. The paper draws on findings from an ATD Fourth World participatory research project aimed at updating the course content for a pre-existing social worker training module on poverty awareness. The project brings together families with experience of poverty and CP interventions, social work practitioners and academics.     

The measurement of transient poverty: Theory and application to Pakistan

The present paper investigates the measurement of transient poverty when each person's welfare level fluctuates due to exogenous risk. The paper namely characterizes the sensitivity of transient/chronic poverty decomposition with respect to the poverty line and to the expected welfare level so that the decomposition analysis will be based on solid theoretical foundations and be robust empirically. Theoretical results show that poverty measures associated with prudent risk preferences perform better than other measures in assuring that the value of transient poverty increases with the depth of chronic poverty and that the decomposition is not highly sensitive to the poverty line. Poverty measures such as those associated with constant relative risk aversion are thus superior to popular Foster–Greer–Thorbecke (FGT) measures such as headcount, poverty gap, and squared poverty gap indices. These theoretical arguments are confirmed empirically by the application of the decomposition to a two-period household panel dataset from rural Pakistan. The relative magnitudes of transient versus chronic poverty are more robust to changes in the poverty line when poverty measures associated with constant relative risk aversion are used than when FGT poverty measures are used.     

Three perspectives on the mismatch between measures of material poverty

The two most prominent measures of material poverty within contemporary European poverty analysis are low income and material deprivation. However, it is by now well‐known that these measures identify substantially different people as being poor. In this research note, I seek to demonstrate that there are at least three ways to understand the mismatch between low income and material deprivation, relating to three different forms of identification: identifying poor households, identifying groups at risk of poverty and identifying trends in material poverty over time. Drawing on data from the British Household Panel Survey, I show that while low income and material deprivation identify very different households as being poor, and display distinct trends over time, in many cases they identify the same groups at being at risk of material poverty.     

Multiple Disadvantages Among Older Citizens: What a Multidimensional Measure of Poverty Can Show

Using the newly created Freedom Poverty Measure, a multidimensional measure of poverty, it can be seen that there were 534,700 individuals who were in freedom poverty, who had either poor health or poor education in addition to having low incomes. This multidimensional disadvantage would not normally be captured by single measures of poverty, such as income poverty measures. Men were significantly less likely to be in freedom poverty than women (OR = 0.63, 95% CI: 0.54–0.74, p < .0001), and the proportion of individuals in freedom poverty increased with age, with those older than 85 being 2.3 times more likely to be in freedom poverty than those aged 65 to 69 years (95% CI: 1.73–3.11, p < .0001). Policy responses to address the marginalization of disadvantaged older people should take a multidisciplinary approach, addressing health inequalities in particular, not just low income.     

“Heating Is More Important Than Food”

Abstract

Fuel poverty is estimated to affect millions of people in the UK, and older people are especially vulnerable. Most research into fuel poverty has drawn upon quantitative paradigms. The aim of this study, therefore, was to investigate the perceptions and experiences of older women in relation to fuel issues. Ten qualitative semi-structured interviews were undertaken during the winter of 2005. The interviews were tape-recorded and transcribed verbatim. A phenomenological approach was used for analysis. Four main themes emerged: causes of fuel poverty; managing money; heating is a priority;and government initiatives. The results from this study show that fuel poverty is an important health and financial concern for older women.     

Measures for Studying Poverty in Family and Child Research

Most family scholars take the concept of poverty for granted. The variety of ways people have chosen to define and measure this concept, however, often makes it difficult to interpret or compare research results. We review and critique the ways that poverty has been measured in the family and child literatures as well as the measures that have been used to help understand variations in adaptation among those in poverty. In addition to reviewing more common measures, we include discussions of two new measures that have the potential to contribute to the literature on poverty: basic family budgets and social exclusion.     

International income poverty measurement: which way now?

We critically review conceptual and empirical issues surrounding the derivation of the international poverty line, expressed in PPP-adjusted dollars and linked to various rounds of the International Comparison Program (ICP). We find that there are some limitations in the current estimation of these lines, but show that statistically superior methods lead to lines that are relatively robust and confirm the $1.25 using 2005 PPPs and suggest $1.67–1.71 using 2011 PPPs (or close to the $1.90 proposed by the World Bank if we follow the World Bank’s approach of adjusting inflation rates in some countries); they also roughly confirm the current shape of the proposed ‘weakly relative’ poverty line. Using the new absolute line based on 2011 PPPs would lead to substantially lower poverty in our estimation. The extent of the decline depends on whether and how one treats China, India, and Indonesia differently from other countries in the 2005 and 2011 PPPs. More seriously, we note that the dependence on successive ICP rounds creates conceptual and empirical problems that have become worse over time so that we suggest that it would be best to consider alternatives to the current reliance on ICP rounds and the resulting PPPs. As a short-term solution we propose to fix the international poverty line in national currencies using either the 2005 or 2011 level; in the medium term, we argue for global poverty measurement based on internationally coordinated national poverty measurement.     

Poverty and the American Family: A Decade in Review

Because of dramatic levels of economic volatility and massive changes in welfare policies, scholars in this decade worried anew about whether our official poverty measure, adopted in the 1960s, is adequate. Poverty's causes continued to be debated, with demographic factors often pitted against policy and maternal employment changes. Some scholars focused on events that trigger spirals into poverty or poverty exits. The literature on consequences of poverty featured new techniques for identifying underlying processes and mechanisms. Researchers also explored “neighborhood effects” and focused on poverty deconcentration efforts. Finally, scholars produced a voluminous literature on the efforts to reform welfare and their subsequent effects.     

Attitudes toward poverty among exit students of undergraduate social work programs in eight Latin American countries

What is the attitude of Latin American undergraduate social work students toward poverty? An earlier study from Europe and other countries worldwide found that most graduating social work students who participated in the research were clear about the socio-structural causes of social problems such as poverty. Still, no data on this topic is available for Latin American countries. The aims of this study were: (1) to describe and to compare eight Latin American graduating undergraduate social work student groups regarding their attitudes toward poverty, as measured by two scales: Causes of poverty scale and Ways of dealing with poverty; and (2) to discuss some of the implications of the study for social work education and practice. Using a quantitative transnational-comparative design, a total sample of 525 nonrandomly selected, graduating undergraduate social work students from eight Latin American countries responded to a self-administered questionnaire. An individualistic attitude to understanding and to dealing with poverty emerged in the majority of the student groups. Multivariate procedures and inferential analyses demonstrated variations across the student groups. Implications for social work education and practice are discussed.     

ANALYZING THE IMPACT OF THE WORLD'S LARGEST PUBLIC WORKS PROJECT ON CRIME

India started the implementation of a rural public works program in 2006, covering all districts of the country within 3 years. The program guarantees 100 days of employment per year at minimum wage to each rural household, with the goal of reducing joblessness and poverty. We exploit the design and implementation of this program to investigate its employment impact on various types of crimes to provide rare evidence on the employment–crime relationship in a developing country context. We find that employment generated by the program has a negative impact on both property crime and violent crime. The same conclusion is reached when we analyze the impact of the program using its staggered rollout structure as the source of identification in a difference-in-difference analysis. Although crime elasticities with respect to employment are small, this finding represents another dimension of the social benefit generated by the program. (JEL K4, E24, H54)     

Social Sector Priorities: An Analysis of Budgets and Expenditures in India in the 1990s

Many policies in India, including economic reform policies, are officially intended to alleviate poverty. But how committed is the Indian government? And to what? This article addresses India's social spending priorities over the past decade. Looking at the rhetoric in budget speeches, actual expenditure patterns and the process by which budgets are formulated, it finds a widened concept of poverty and a shift away from income and employment programmes to human development. The budget‐making process is not very participatory, and the role of the Finance Ministry has increased. Although the widening of the concept of poverty has positive aspects, within the overall context of structural adjustment it has facilitated the politically convenient neglect of other dimensions (income and employment).     

Number Fetish: Middle-class India's Obsession with the GDP

Abstract

India has been fixated on the annual growth rate of the Gross Domestic Product (GDP). This number averaged about 3.5% per annum from independence to the early 1980s, leaped to twice that in recent decades before falling off in the last five years to about 5% per annum. The GDP emerged at a specific moment in the evolution of capitalism and was never intended to be a measure of the quality of life of people. Gross Domestic Product discussions reveal a desperate desire on the part of many in India to be seen as having arrived into the first world. In a context marked by the paradox of electoral democracy alongside mass poverty and rising inequality, focusing on the GDP legitimizes an unjust social order. The GDP number seeks to transform politics in a technical and asocial direction, and the obsession with it powerfully undergirds the hegemony of a neoliberal vision of India.