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Growth, Structural Change, and Poverty Reduction: Evidence from India

dc.contributor.authorRana Hasan
dc.contributor.authorSneha Lamba
dc.contributor.authorAbhijit Sen Gupta
dc.description.abstractWe examine the relationship between growth in labor productivity and poverty reduction through the lens of changes in the structure of output and employment. Combining statelevel data from India on poverty with state-level data on output and employment for 11 production sectors over 1987–2009, we find that the movement of workers from lower to higher productivity sector is an important channel through which increases in aggregate productivity translate into poverty reduction. We also find that the importance of this channel of productivity growth, termed structural change by recent literature, varies across states. Exploratory analysis reveals that indicators of financial development, business regulations that promote competition and flexible labor regulations are associated with larger reallocations of labor from lower to higher productivity sectors. Overall, our findings are consistent with the view that a better investment climate is not only good for business, it is also an important means for making growth more pro-poor in a labor abundant country.
dc.publisherAsian Development Bank
dc.rightsCC BY 3.0 IGO
dc.titleGrowth, Structural Change, and Poverty Reduction: Evidence from India
dc.typeWorking Papers
dc.subject.expertEconomic Crisis
dc.subject.expertEconomic Efficiency
dc.subject.expertEconomic Policies
dc.subject.expertRegional Economic Development
dc.subject.expertPublic Sector Wages
dc.subject.adbEconomic cooperation
dc.subject.adbGross domestic product
dc.subject.adbWage payment systems
dc.subject.naturalFinancial crisis
dc.subject.naturalLabor economics
dc.subject.naturalRegional economics
dc.subject.naturalGuaranteed annual wage
dc.subject.naturalWage differentials
dc.subject.naturalWages and labor productivity
dc.title.seriesSouth Asia Working Papers
dc.title.volumeno 22
dc.contributor.imprintAsian Development Bank
oar.themePublic Sector
oar.adminregionSouth Asia Region
oar.dep.classMajor Knowledge Product
oar.authorHasan, Rana
oar.authorLamba, Sneha
oar.authorGupta, Abhijit Sen

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