Indira Gandhi Institute of Development Research

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    308 research outputs found

    Impact of public spending on health and education of children in India: A Panel data simultaneous equation model

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    The basic objective of the study is to examine the impact of public expenditure on health and education after incorporating the linkages between health status of children and their educational achievements in India. This study has developed a simultaneous equation model among health and education of children, and public expenditure on these sectors. Three stage least squares technique is applied to get consistent and efficient estimates of the system. The results show that bad health status among children, captured by high IMR, is responsible to have lower enrollment rates and high dropout rates in primary level. In addition, public expenditure on Supplementary Nutritional Program has indirect positive impact on education through the improvements in health status of children whereas additional expenditure on elementary education has positive impact on enrollment rates, but at diminishing rate. Moreover, public expenditure on elementary education has greater impact on enrollment as compared to dropout rates

    Short-term migration and consumption expenditure of households in rural India

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    In 2007-08, short-term migrants constituted 4.35 per cent of the rural workforce. A total of 9.25 million households in rural India had short-term migrants.Using a nationally representative data for rural India, this paper examines differences in consumption expenditure across households with and without a household member who is a short-migrant. We use an instrumental variable approach to control for the presence of a short-term migrant in a household. We find that households with a short-term migrant have lower monthly per capita consumption expenditure and monthly per capita food expenditure compared to households without a short-term migrant. Short-term migrants are not unionised, they work in the unorganised sector, they do not have written job contracts and state governments are yet to ensure that the legislation protecting them are properly enforced. This could be one of the reasons why we do not observe higher levels of expenditure in households with such migrants

    The 'Poorest might catch up': Convergence vs. Pseudo-convergence

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    Public welfare policies in developing countries have a Rawlsian perspective; they seek to uplift the poor, the poorest of the poor in particular. Policies to enable the poor to catch up with the rich are generally two-fold, viz., inclusive growth, and redistributive (transfer) programmes. This paper proposes twin concepts and measures of convergence (κ*) and pseudo-convergence (pseudo-κ*) to characterize such outcomes. Unlike the conventional measures of convergence, they can contra-distinguish outcomes during economic growth as against decay. Illustrations based on estimates of per capita GDP and consumption across countries in the world show divergence and pseudo-divergence between 1993 and 2011

    India's energy system transition-survival of the greenest

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    The transition to a clean and green energy system is an economic and social transformation that is exciting as well as challenging. The world today faces a formidable challenge in transforming its economy from being driven primarily by fossil fuels, which are non-renewable and a major source of global pollution, to becoming an economy that can function effectively using renewable energy sources and by achieving high energy efficiency levels. In the present study, a green economy scenario is developed for India using a bottom-up approach. The results show that significant resource savings can be achieved by 2030 through the introduction of energy-efficient and green technologies. The building of a green energy economy can also serve another purpose: to develop new 'pathways out of poverty' by creating more than 10 million jobs and thus raise the standard of living of low-income people. The differences between the baseline and green energy scenarios are not so much the consequence of the diffusion of various technologies. It is the result of the active roles of different actors and the drivers that become dominant

    Neighborhood and agricultural clusters across states of India

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    In this study we trace how number and members of income clusters have changed in Indian agriculture over the last four and a half decades. Two features which stand out in our results are that not all geographical neighbors belong to the same cluster and clusters include both geographical neighbors and non-neighbors. To identify the factors driving a pair of states to common cluster we then use a logit model and find that smaller is the relative difference between them in terms of mechanization, infrastructural support, deviations from normal rainfall and price differences, higher are the chances that they will be in the same income cluster. Between contiguous and non-contiguous state pairs we find that apart from the common factors, smaller relative differences in irrigation support, rainfall and price differences additionally brings non-contiguous states together

    Budget 2014: Marginal realignment of tactics to strategy

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    The paper examines the restructuring of expenditure in the first budget of the new government, and its feasibility. It compares the increase in budget allocations for key macroeconomic aggregates and sectoral plan outlays for the BJP and UPAII interim budget, and the change from the interim budget. Although overall tactics are aligned to the strategy articulated, the alignment is only marginal as yet, because the various strands are not well integrated to tell a coherent story of how they work together, and changes are not quantitatively significant. This is unfortunate because the macroeconomic changes are aimed at raising growth and jobs. There are also small beginnings in better systems, incentives, composition of public spending and public services. Apart from contributing to growth these help improve equality through capacity creation so the economy does not hit sectoral bottlenecks, as happened with the past excessive share of consumption-inducing government expenditures. A performance in relation to a promise based index ranking of post reform governments shows that although the UPAII was worst, the first congress government was the best, with the BJP led NDA coming in third. So the BJP has to do better this time if it wants to improve its ranking

    Unemployment burden and its distribution: Theory and evidence from India

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    We develop a measure of unemployment that takes into account both the level and intensity of unemployment and that satisfies several desirable properties, including distribution sensitivity (dealing with differences among the unemployed). It can also be decomposed into mean and distributional components and contributions to unemployment by various subgroups of the population. We then apply this measure to understand unemployment in India using data from National Sample Surveys on employment and unemployment during the period 1993-2012. We show that unemployment has generally fallen in this period, but this finding has to be seen in light of considerable underemployment. Moreover, unemployment is driven to a greater extent by higher educated groups; the unemployment among these groups is also fairly substantial. The distribution of unemployment has also worsened. We explain these findings and suggest some policies

    Estimating workers' bargaining power and firms' Markup in India: Implications of reforms and labour regulations

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    We examine implications of industrial deregulations, trade liberalisation and labour regulations on workers' bargaining power and firms' markup in Indian manufacturing industries, using state-wise three-digit industry-level panel data for the period 1980-2007. Results of our econometric analysis suggest that both industrial deregulations and trade liberalisation led to significant declines in workers' bargaining power, which was already less than 6.7% on an average during pre-reform era. However, none of these reforms appears to have any significant effect on firms' markup. Our results also suggest that amendments to labour regulation by State governments, which aim to simplify procedures and reduce costs of industrial dispute resolutions, have a significant positive effect on workers' bargaining power. Surprisingly, amendments to Employment Protection Legislations do not appear to have any significant effect on workers' bargaining power. We also document considerable variation in firms' markup and workers' bargaining power across industry-groups and States

    Reading the tea leaves on financial inclusion: The Case of rural labour households

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    Understanding the extent of financial inclusion of rural labour households is important since in the intercensal period 2001-11, the proportion of agricultural labourers in the workforce increased by 3.5 percentage points. This paper examines progress in financial inclusion using information on indebtedness of rural labour households collected by NSSO as part survey of employment and unemployment conducted in 2004-05 and 2009-10. It is estimated that 22.3 million out of the nearly 66 million rural labour households report being in debt in 2009-10. The share of formal institutions in outstanding debt of rural labour households increased from 29 percent to 37 percent while the share of money lender decreased from 44 percent to 33 percent during this period. There has been a near doubling of loans sourced from cooperative societies and a 77 percent increase in loans sourced from banks. In contrast, outstanding debt on account of borrowing from money lender increased by a meagre 1.7 percent. One does not have a ready explanation for the miniscule growth in outstanding loans from money lenders. What is promising is that the reliance on institutional sources among rural labour households without cultivable land increased from 20.6 percent to 26 percent. The aggregate picture however masks large variations across the states of India and one does not observe any structural change in geographical distribution of flow of credit and share of outstanding advances to the landless

    Linkages between parental education, utilization of health care facilities and health status of children: Evidence from India

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    In this paper we identify the multiple channels by which parental education affects child health status. These can be summarised as follows: (a) parental education directly improves child health status; (b) amongst all those who utilised institutional health care facilities children of educated parents have a better health status; (c) educated mothers are more likely to utilise institutional health care whether or not such facilities are available within their village; and (d) educated parents are more likely to utilise health care centre that is available in a village, compared to uneducated parents. Our results show that merely expanding the supply of health care facilities will not help to increase the pace of reduction in child mortality rates and improve child health status. Utilization of existing health care services too should expand and here women’s education plays a positive role. Hence, the government has to pay attention to increase education level of adults, women in particular, along with the expansion of health care coverage


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