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Citation Information

Type Working Paper
Title A Poverty Analysis in Baitadi District, Rural Far Western Hills of Nepal: An Inequality Decomposition Analysis
Publication (Day/Month/Year) 2007
URL https://mpra.ub.uni-muenchen.de/35384/1/A_Poverty_Analysis_in_Baitadi_District_Rural_Far_Western_Hil​ls_of_Nepal_An_Inequality_Decomposition_Analysis.pdf
Occupational caste is deprived in terms of education, and landholding. Due to this laboring
and agriculture (specially small animals like goats and poultry) remain the prominent source of
income for them. Average income from salaried job is the highest followed by remittance and
that from laboring is the lowest. This led to the high concentration of Occupational caste under
third and fourth income quartile (poorer). A share of income from agriculture in total income is
the highest and the share from laboring is the lowest. Relative concentration coefficient (RCC-ci
or gi) shows salaried job has both the highest income disequalizing effect (ci = 1.56 or gi = 1.49)
as well as the highest factor inequality weight (wici) followed by agriculture. In case of Melauli,
however, salaried job followed by remittance has the highest income disequalizing effect.
Negative values of Relative Concentration Coefficient and factor inequality weight for laboring
indicate that income from it has the income equalizing effect. Thus, agricultural promotion in
rural areas based on labor demand increasing policies with proper market arrangement for the
agricultural produce will be helpful to reduce the income inequality. In addition, regulation
regarding working hour and minimal wage rate should be strictly enforced for the welfare of
those involved in laboring, which is also the poorest.

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