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Unemployment and
Income Inequalities in
India
Poverty
--
Sonia Gandhi
We cant live happily as islands in a sea of poverty
it
can
be
defined
as
social
like
longevity,
knowledge
and
Poverty
Line:
the
estimated
level
of
Year
Rural
Poverty
Line in Rs
Urban Poverty
line in Rs
1973-74
49.63/day
56.64/day
2004-05 (adjusted
prices)
35.63/day
53.80/day
2011-12(estimates
by Planning
Commission)
27.20/day 33.33/day
(816/mont (1000/month)
h)
level
of
living
countries
where
as
definition
Types of Poverty
Absolute Poverty
It
defines
converting
poverty
minimum
line
as
physical
Relative Poverty
Income distribution of the population in
different fractile groups is estimated and a
comparison of the levels of living of the
top 5 to 10% with the bottom 5 to 10% of
the population reflects relative standards
of poverty.
Studies on Poverty
Estimates during 1960s: done by B.S.
Minhas, M.S. Ahluwalia, P.K. Bardhan and V.M.
Dandekar (1967-68) and N.K Rath(1968-69)
Estimates
Planning
for
1973-74
Commission
to
1998:
estimates
the
(early
to
1994),
Guarav
Dutt
All India
Rural
Urban
27.09
23.62
7day recall
24.02
21.59
23.33
in
December
2009
(pls
refer
Indian
for
rural
areas
and
Rs
Comparison between
Tendulkar and Rangarajan
Committees
Committees
Tendulkar
C Rangrajana
Set Up By
Planning Commission
Planning Commission
Set Up In
2005
2012
Submitted Report
2009
2014
Poverty Estimation
Method
Monthly Expenditure of
family of five.
33
47
1000
1407
5000
7035
27
32
816
972
4080
4860
27 crore
37 crore
Calorie Expenditure
2400
2155
2100
2090
1-food
2- nonfood items such as
education,
3-healthcare,
4-clothing,
5-transport
6-rent.
7- non-food items that
meet nutritional
requirements.
Poverty alleviation
Measures
Small Formers Development Agency (SFDA)
SGSY
EAS
SGRY (in 2001 SGSY,EAS and TRYSEM
included)
(For more details pls refer Indian Economy
and Rural Development text books)
Employment and
Unemployment in India
production caused
Trends in Employment in
India
In the recent past, there
has been deceleration in
the growth of employment in India in spite of the
accelerated growth. This can be explained in
terms of steady decline in employment elasticity
in all the major sectors of the economic activity
except in construction.
Year
Employment Elasticity
1983 to 1993-94
0.52
1993-94 to 1999-2000
0.16
1999-2000 to 2009-2010
0.19
Year
Employment Elasticity in
Agriculture
1983 to 1993-94
0.70
1993-94 to 1999-2000
0.01
1999-2000 to 2009-2010
0.04
According
to
International
Labour
Organisation (ILO)
Unemployment is when people are without
jobs and they have actively looked for jobs
Unemployment in developing countries is
both open and disguised and in developed
countries by cyclical
India suffers from structural unemployment
Unemployment Rate in
India
Year
In Percentage
1983
8.30
1994
5.99
2007
2008
2009-10
9.8
2010
3.8
2011
9.4
1983 to 2011
1999200
200405
200910
199394 to
19992000
In millions
19992000
to
200405
200405 to
200910
CAGR %
Labor
force
381.
94
2.93
-0.01
Work
force
374.
45
2.90
0.05
Unempl
oyed
7.49
8.96
11.15
9.70
2.2
2.37
2.06
As a
1.96
proporti
on of
labor
force in
%
unemplo
Nature of Unemployment
Most of the unemployment in India is definitely
unemployment
unemployment
and
educated
Rural Unemployment:
Exists in rural areas and sub-classified as
underemployment
and
disguised
unemployment
Concepts of Unemployment: keeping in view
the recommendations of the Committee of
Experts on Unemployment, the NSSO has
developed and standardized concepts and
definitions of labour force, employment and
unemployment suitable to Indian conditions.
Commission
for
analyzing
the
and
seasonal etc.
involuntary,
frictional
and
Causes of Unemployment
Jobless growth
Increase in labour force
Inappropriate Technology
Inappropriate Educational System
is
2%
per
annum.
Latter
GDP
grown
growth
rate
was
2.2%(1960s)
changes
Inappropriate
Technology:labour
intensive
says
that
these
are
not
only
Major Employment
Schemes
TRYSEM (1979)
Jayanthi
Gram
Swarojgar
Yojana
(1999)
Sampoorna Grameen Rojgar Yojana (2001)
Prime Ministers Rojgar Yojana
Income Distribution
and Inequalities in
India
In
order
to
understand
the
impact
of
The
the
Research(NCAER)
National
Council
and
some
of
Applied
individual
for
estimating
income
distribution
1950s
was
estimated
by
F.H.
Lydall,
N.S.
they
distributed
among
the
decile
groups
consumption
expenditure
is
considered
The
estimates
were
also
suffered
with
data
were
optimistic
about
the
Percentage distribution of
Household expenditure by percentile
groups of households
Percentile group of
house hold
198090
1994
1997
2005
2010
8.8
9.2
8.1
8.6
12.5
13.0
11.0
12.2
12
Third quintile
16.2
16.8
15.0
15.8
16
Fourth quintile
21.3
21.7
19.3
21.0
21
41.3
39.3
46.1
42.4
43
Highest 10%
27.1
25.0
33.5
28.5
29
(which
is
th
period
of
economic
sector
Inequalities in Professional training
Inflation and the price rise
Inequality in credit rise
Urban bias in private investment
The role of government
marginal
i.e.,
<1hectare
and
area
and
as
result
it
has
greatly
To
sum
up,
supposedly
the
various
undertaken
measures
by
the