CONTENTS

Particulars

Page No.

LIST OF TABLES
LIST OF FIGURES
LIST OF APPENDIX
LIST OF ANNEXURE
ABBREVIATIONS
CHAPTER 1

INTRODUCTION

1.1

Trends in Poverty at National and State Levels

1.2

Conceptualisation of Poverty

1.3

Poverty line- Evolution of the Concept

1.4

Poverty: Plausible Explanations

1.5

Poverty and Development

1.6

Poverty Alleviation Programmes

1.7

Objectives of Study

1.8

Chapter Scheme

CHAPTER 2

REVIEW OF LITERATURE

2.1

Defining and Measuring Poverty

2.2

Extent of Shift and Factors Affecting Poverty

2.3

District Level Studies

2.4

Identification of Poor

2.5

Inconsistency Between Official Poverty Estimates and Other

1-17

18-51

Estimates
2.6

Performance of Poverty Alleviation Programmes

2.7

Studies on Punjab Economy

CHAPTER 3
3.1

DATABASE AND RESEARCH DESIGN

Punjab- A Profile at State Level and District Level
3.1.1 Punjab- A Profile
3.1.2 Punjab- A Profile of its Cultural Regions
3.1.3 Profiles of Sampled Districts of Doaba Region
3.1.3.1 Hoshiarpur

52-81

3.1.3.2 Jalandhar
3.1.3.3 Kapurthala
3.1.3.4 Nawanshahr
3.2

Research Design
3.2.1 Selection of Block
3.2.2 Selection of Villages and Households from Rural
Areas
3.2.3 Selection of Wards and Households in Urban Areas
3.2.4 Schedule
3.2.5 Selection of Sample for Evaluation of Poverty
Alleviation Programs
3.2.6 Secondary Data

3.3

Methodology
3.3.1 Determination of Conventional Poverty Line
3.3.1.1 Modified Poverty Line
3.3.2 Indicators of Poverty
3.3.3 Poverty Measures
3.3.3.1 Headcount Ratio (Hp)
3.3.3.2 Poverty Gap Index (PGI)
3.3.3.3 Income Gap Ratio / Poverty Gap Ratio (Ip)
3.3.3.4 Sen Index (Sp)
3.3.3.5 Squared Poverty Gap (Ip2)
3.3.3.6 Poverty Index Thon (Thp)
3.3.4 Statistical Tools
3.3.4.1 Hypothesis Testing Using Z-Statistics
3.3.4.2 Gini Coefficient (Gp) and Lorenz Curve
3.3.4.3 Regression Analysis
3.3.4.4 Principal Component Analysis

CHAPTER 4

SOCIOECONOMIC PROFILE OF SAMPLED

HOUSEHOLDS

4.1

Demographic Characteristics
4.1.1 Demographic Differences on the Basis of Habitation
and Social Groups
4.1.2 Household Size
4.1.3 Demographic Differences between Poor and Nonpoor
4.1.4 Age Composition
4.1.5 Dependency Ratio
4.1.6 Sex Ratio
4.1.7 Poor and Non-poor Households: A Comparison

4.2

Income Profile
4.2.1 Per Capita Income Distribution by Habitation
4.2.2 Distribution of Per Capita Income by Social Groups
4.2.2.1 Social Group: SC
4.2.2.2 Social Group: Non-SC
4.2.3 Inequality in Income Distribution
4.2.3.1 Deciles Distributive Shares and Lorenz
Curves
4.2.3.2 Kuznets Ratio
4.2.4 Estimates of Income Distribution
4.2.5 Index of Income Poverty
4.2.6 Source of Income

4.3

Expenditure Profile
4.3.1 Level of Expenditure
4.3.2 Expenditure Pattern
4.3.2.1 Non-durable consumer expenditure
4.3.2.2 Expenditure on Durable Items

4.4

Occupation Profile

84-159

4.4.1 Distribution of Households According to Economic

Activity
4.4.1.1 Sectoral Distribution of Households on the
Basis of Habitation
4.4.1.2 Sectoral Distribution on the Basis of Social
Groups
4.4.1.3 Sectoral Distribution of Households on the
Basis of Economic Groups: Poor and Nonpoor
4.4.1.4 Distribution of Working Persons by Broad
Industry Division
4.4.3 Work Participation Rate
4.4.3.1 Work Profile and Per Capita Income
4.4.3.2 Age Specific Work Force Participation Rate
(ASWPR)
4.4.4 Employment and Education Level
4.5

Education Profile
4.5.1 Literacy Ratio
4.5.2 Literacy by Habitation
4.5.3 Rural-Urban (Population Group-wise) Distribution
4.5.4 Literacy by Gender Difference
4.5.5 Social Group-wise Distribution
4.5.6 Poor and Non-Poor (Population Group-wise)
Distribution
4.5.7 Educational Inequality
4.5.8 Average Years of Schooling
4.5.9 Education and Development

4.6

Housing Profile
4.6.1 Type of Houses
4.6.2 Number of Dwelling Rooms
4.6.3 Availability of Separate Kitchen

4.6.4 Availability of Electricity and Toilet

4.6.5 Households by Tenure Status
4.6.6 Type of Fuel used for Cooking
4.6.7 Source of Drinking Water
4.6.8 Housing Characteristics
CHAPTER 5
5.1

DATA ANALYSIS AND RESULTS

160-190

Measurement of Poverty
5.1.1 Poverty Estimation at District Level with Various
Poverty Measures
5.1.1.1 Social Group and Poverty Estimation
5.1.1.2 Poverty Estimation According to Different
Occupation Groups
5.1.2 Poverty Estimation on the Basis of Monthly Per
Capita Income (MPCI)
5.1.2.1 Secondary Poverty Line and Poverty
Estimation
5.1.3 Poverty Estimation on the Basis of Monthly Per
Capita Expenditure
5.1.3.1 Estimation of Appropriate Poverty Line on
the Basis of Food and Non-Food Expenditure
of Poor
5.1.3.2 Estimating

Food

and

Non-

Food

Expenditure
of Poor on the basis of Appropriate Poverty

5.2
Line

Determinants of Poverty: The Empirical Results

5.3

5.2.1 A Simple Regression Analysis

5.2.2 A Step -wise Regression Analysis
Extent of Deprivation and Poverty in Punjab
5.3.1 District-Wise Deprivation Index

5.3.2 Deprivation Index According to Different Social

Groups
5.3.3 Quintile Distribution of Deprivation Index
CHAPTER 6

EFFECTIVENESS OF POVERTY ALLEVIATION

191-221

PROGRAMMES
6.1

Various Poverty Alleviation Programmes Working in India

6.1.1 Rural Poverty Alleviation Programmes
6.1.2 Urban Employment Guarantee Programmes
6.1.3 Micro Credit and Poverty Alleviation

6.2

Poverty Alleviation Programmes in Punjab

6.2.1 Poverty Alleviation Programmes in Operation in
Punjab
6.2.1.1 Swarnjayanti Gram Swarojgar Yojana
(SGSY)
6.2.1.2 National Rural Employment Guarantee
Scheme (NREGS)
6.2.1.3 Indira Awas Yojana (IAY)
6.2.1.4 Atta Dal Scheme
6.2.2 Effectiveness of Poverty Alleviation Programmes in
Punjab

6.3

Empirical Analysis of Poverty Alleviation Programs

6.3.1 Socio -Economic Condition of the Beneficiaries
6.3.2 Impact of Implementation of Poverty Alleviation
Programmes on Sampled Households

CHAPTER 7

SUMMARY, POLICY IMPLICATIONS AND

222-241

SUGGESTIONS
BIBLIOGRAPHY

242-258

APPENDICES

I XXI

ANNEXTURE

XXII-XXX

LIST OF TABLES
Table No.
1.1

Particulars
Percentage of People below Poverty Line in Punjab and All

Page No.
3

India: 1973-74 to 2004-05-A Comparison

1.2

State-wise Poverty Ratio: 1973-74 to 1999-2000-A Comparison

1.3

State-wise Number of Poor, Poverty Line and Poverty Ratio

(1999-2000)
1.4

Indicators of Millennium Development Goals

14

2.1

Empirical Studies at a Glance: Defining and Measuring Poverty

22

2.2

Empirical Studies at a Glance: Extent of Shift and Factors

27

Affecting Poverty
2.3

Empirical Studies at a Glance: District Level Studies

30-31

2.4

Empirical Studies at a Glance: Identification of Poor

35

2.5

Empirical Studies at a Glance: Inconsistency Between Official

39

Poverty Estimates and other Estimates

2.6

Empirical Studies at a Glance: An Evaluation of the Performance

46-47

of Poverty Alleviation Programmes

2.7

Empirical Studies at a Glance: Studies on Punjab Economy

50

3.1

Statistical Profile of Punjab and India (2001)

53

3.2

District-wise Statistical Profile of Punjab 2001

55

3.3

Statistical Profile of Cultural Regions of Punjab (2001)

56

3.4

Statistical Profile of Sampled Districts in Doaba Region of

61

Punjab (2001)
3.5

List of Villages Selected for Study

64

3.6

List of Selected Wards

64

3.7

Secondary Data Sources for the Study

66

3.8

Variables Used for Regression Analysis

80

3.9

Variables Used to Construct Deprivation Index

81

District- wise Demographic Characteristics on the Basis of

85

4.1.1

Habitation

Table No.
4.1.2

Particulars
Percentage Distribution of Poor and Non-poor by Household

Page No.
86

Size
4.1.3

Demographic Differences between Poor and Non- poor

88

4.1.4

Age Composition of Poor and Non-poor Households

89

4.1.5

Comparison of Poor and Non-poor Sampled Households: Test of

92

Mean
4.2.1

Percentage Distribution of Population and Households

94

According to Average Monthly Per Capita Income (AMPCI)

4.2.2

Average Monthly Per Capita Income (AMPCI) and Percentage

97

Distribution of Scheduled Caste (SC) Population

4.2.3

Average Monthly Per Capita Income (AMPCI) and Percentage

98

Distribution of Non -Scheduled Caste (Non-SC)

4.2.4

Cumulative Percentage Share of Income

99

4.2.5

Estimates of Kuznets Ratio

102

4.2.6

Estimates of Income (AMPCI) Distribution

103

4.2.7

Index of Income Poverty

104

4.2.8

Percentage Distribution of Households Earning According to

105

Source of Income
4.2.9

Percentage of Persons Earning Income from Different Sources

106

by MPCI Class
4.3.1

Average Monthly Per Capita Expenditure by Household Type

108

(Rs.)
4.3.2

Percentage Share of Food and Non-food Items in Average

109

Monthly Per Capita Expenditure

4.3.3

Consumption Expenditure on Food and Non-food Items (Rural

113

Areas)
4.3.4

Consumption Expenditure on Food and Non-food Items (Urban

113

Areas)
4.3.5

Proportion of Households Possessing Different Durable Items

114

Table No.

Particulars

4.4.1

Percentage Distribution of Households Earnings from Various

Page No.
116

Sources
4.4.2

Percentage Distribution of Households by Household Type and

118

Social Group
4.4.3

Percentage Distribution of Households by Household Type and

119

Economic Groups
4.4.4

Percentage Distribution of Working Persons by Broad Industry

121

Division
4.4.5

Work Participation Rate at the Age of 15 years (Percentage)

122

4.4.6

Work Profile and Per Capita Income

123

4.4.7

Percentage Distribution of Working Persons by Age Group

124

4.4.8

Education level of Employed at the Age of 15 years (Per cent)

125

4.5.1

Percentage Distribution of Population by Gender, Education and

128

Habitation
4.5.2

Distribution of Literacy According to Gender and Habitation

129

Groups (Per cent)

4.5.3

Significance of Difference in Education Level Attained

132

According to Habitation, Gender and Various Social Groups.

4.5.4

Distribution of Literacy Ratio by Sex, Social Group and

133

Habitation
4.5.5

Education Characteristics of Poor and Non -Poor

134

4.5.6

Gini Co-efficient of Family Education by Social Group

136

4.5.7

Rural - Urban Disparity of Education: Cumulative Percentage

136

Share of Family Education by Fractile Group

4.5.8

Average Year of Schooling

137

4.5.9

Average Years of Schooling for SC Households

138

4.5.10

Average Year of Schooling for Non- SC Social Group

139

4.5.11

Step-wise Regression Results for the Sampled Districts

141

4.5.12

Step-wise Regression Results for the Doaba Region of Punjab

143

Table No.

Particulars

Page No.

4.6.1

Distribution of Household by Condition of Houses

145

4.6.2

Distribution of Households by Number of Dwelling Rooms

147

4.6.3

Distribution of Households by Availability of Separate Kitchen

148

4.6.4

Distribution of Households by Availability of Electricity and

150

Toilet
4.6.5

Distribution of Households by Tenure Status

151

4.6.6

Distribution of Households by Type of Fuel Used for Cooking

152

4.6.7

Distribution of Households by Source of Drinking Water

154

Housing Characteristics and Comparison of Poor and Non- Poor

156

4.6.8 (U)

(Urban)
4.6.8 (R)

Housing Characteristics and Comparison of Poor and Non- poor

157

(Rural)
5.1.1

Poverty Estimation for Different Districts of Doaba Region in

161

Punjab
5.1.2

Incidence and Severity of Poverty among Different Social

163

Groups
5.1.3

Poverty Estimation by Occupation Groups in Doaba Region in

164

Punjab
5.1.4

Incidence, Depth and Severity of Poverty

167

5.1.5

Percentage Distribution of Population Living Below Poverty

167

Line ($1per day) According to Social Groups

5.1.6(a)

Average and Percentage Share of MPCE by the Poor on Food

169

and Non-Food Items

5.1.6(b)

Average and Percentage Share of MPCE by Food and Non-food

170

Items (Appropriate Poverty Line Poor)

5.1.7

Poverty Ratio Using Appropriate Poverty line

171

5.2.1

Regression Estimates of Determinants of Poverty (Rural)

175

5.2.2

Regression Estimates of Determinants of Poverty (Urban)

176

Table No.

Particulars

5.2.3

Regression Estimates of Determinants of Poverty (All Sampled

Page No.
177

Districts)
5.2.4

Determinants of Poverty in Hoshiarpur District: An Application

179

of Step-wise Regression
5.2.5

Determinants of Poverty in Jalandhar District : An Application

180

of Step-wise Regression
5.2.6

Determinants of Poverty in Kapurthala District: An Application

181

of Step-wise Regression
5.2.7

Determinants of Poverty in Nawanshahr District: An Application

182

of Step-wise Regression
5.2.8

Determinants of Poverty in Rural Punjab: An Application of

182

Step-wise Regression
5.2.9

Determinants of Poverty in Urban Punjab: An Application of

183

Step-wise Regression
5.2.10

Determinants of Poverty in All Sampled Districts of Punjab: An

184

Application of Step-wise Regression

5.3.1

Deprivation Index for All Sampled Districts of Punjab

187

5.3.2

Deprivation Index According to Different Social Groups

187

5.3.3

Quintile Distribution of Deprivation Index of Punjab

188

6.1.1

Progress of SHG- Bank Linkage

196

6.2.1

Funds Available under SGSY Program for Kapurthala District

198

(Rs.in Lac)
6.2.2

Expenditure under SGSY Program for Kapurthala District (Rs.

198

in Lac)
6.2.3

Budget of Financial Assistance under SGSY for Kapurthala

199

District (Rs. in Lac)

6.2.4

Block-wise Number of Beneficiaries under Self-help Groups

200

6.2.5

Year- wise Details of Employment Generated under NREGA in

201

Kapurthala District

Table No.

Particulars

Page No.

6.2.6

Block-wise Employment Generated up to the Year 2009-10

202

6.2.7

Budget of Financial Assistance under IAY for Kapurthala

204

District (Rs. in Lac)

6.2.8

Block-wise details of Funds Released for Kapurthala District

205

under Indira Awas Yojana (Rs. in Lac)

6.2.9

District- wise number of BPL Families introduced by Planning

207

Commission and the BPL Families Identified under Atta Dal

Scheme by Punjab Government
6.2.10

Subsidy Provided to BPL Families in Atta Dal Scheme

208

6.2.11

Evaluation of Poverty Alleviation Programmes in Punjab

6.3.1

Social Characteristics of Households Possessing BPL Card

212

6.3.2

Economic Characteristics of Household Possessing a BPL Card

213

6.3.3

Distribution of Sampled Households before Implementation of

215

209-210

Poverty Alleviation Programmes

6.3.4

Distribution of Households after Implementation of Poverty

216

Alleviation Programmes
6.3.5

Percentage of Poor Before and After Implementation of Poverty

216

Alleviation Programme
6.3.6

Opinion of Respondents on Implementation of Poverty

217

Alleviation Programmes
6.3.7

Distribution of Households regarding their Satisfaction Level for

Various Poverty Alleviation Programs

218