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India Protection Index

Author

Listed:
  • Rajesh Shukla

    (Rajesh Shukla is Director, NCAER Centre for Macro Consumer Research (NCAER-CMCR) at the National Council of Applied Economic Research, New Delhi)

  • Anil Rai

    (Anil Rai is Principal Scientist, Indian Agricultural Statistics Research Institute, New Delhi)

  • Nitasha Monga

    (Nitasha Monga is Statistical Analyst at Dunn and Bradstreet, US)

Abstract

The success and failure of any democratic government is gauged in terms of how effectively it has fulfilled its constitutional obligation of enhancing social and economic well-being, particularly the common man. While developed economies use a set of indices to measure well-being, a systematic and comprehensive empirical assessment of well-being is found wanting in most developing countries, including India. This paper discusses the status of social and economic well-being of Indian families as measured by a primary survey-based composite index, the India Protection Index (IPI), which is an integration of the important dimensions of well-being. It finds that nearly 65 per cent of households and people in India have a reasonable degree of protection (i.e., the power of well-being) and that most of the less- and under-protected are daily wage earners, without any village–urban divide. The western states are better protected, as Maharashtra has the largest number of well-protected households (16 per cent), followed by Kartnataka and Kerala each accounting for 10 per cent. In terms of concentration, Kerala with 70,735 well-protected households per million is at the top, followed by Karnataka with 44,949 households—Uttar Pradesh and Bihar being at the bottom, with 14,621 and 26,908 households, respectively. The results show that the IPI can effectively be used to identify the status of households in terms of social and economic protection.

Suggested Citation

  • Rajesh Shukla & Anil Rai & Nitasha Monga, 2010. "India Protection Index," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 4(3), pages 339-367, August.
    • Handle: RePEc:sae:mareco:v:4:y:2010:i:3:p:339-367
    DOI: 10.1177/097380101000400305
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    References listed on IDEAS

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    2. White, Howard, 2002. "Combining Quantitative and Qualitative Approaches in Poverty Analysis," World Development, Elsevier, vol. 30(3), pages 511-522, March.
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    More about this item

    Keywords

    Economic Well-being; India Protection Index; Financial Security; Household Surveys; Principal Component Analysis; Index Construction; JEL Classification: C43; JEL Classification: C81; JEL Classification: C82; JEL Classification: C83; JEL Classification: D10; JEL Classification: D18; JEL Classification: D31; JEL Classification: D63; JEL Classification: I32; JEL Classification: J11;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D10 - Microeconomics - - Household Behavior - - - General
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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