Odisha has gone on from being the most underdeveloped Indian state to be the state that has recorded the highest decline in poverty among the states. We undertake decomposition analyses to assess the redistributive changes in poverty and inequality over the period 1993–1994 and 2011–2012 across regions and social groups, examining the NSSO Consumer Expenditure Survey data. We find that while Odisha has succeeded in substantially reducing both rural and urban poverty incidence, this change has not met desirable subgroup‐specific variations. Among regions, southern and northern Odisha have not kept pace with coastal Odisha in poverty reduction during the study period. The rate of poverty reduction for the Scheduled Tribes and the Scheduled Castes has been dismal. Overall, we found the growth effects on poverty reduction to be more prominent over inequality effects and population shift effects on poverty, although these effects varied in contexts. While inequality in urban regions rose, it declined in rural regions. While at the state‐level, the within‐group inequality has declined between 2004–2005 and 2011–2012 (coincident with the present Naveen Patnaik rule); the between‐group inequality has increased during the period. Rural Odisha has seen a reduction in both within‐group and between‐group disparities, whereas urban Odisha has fared the opposite.
As the current phenomenon of “jobless growth” has gripped the Indian labor market, the subnational literature on how states have fared on employment generation in the post‐liberalization period has been sparse. We examine the changing trends in employment and income among different sectors and subsectors of the economy of Odisha, an eastern Indian state, over the period 2011–2012 to 2017–2018 which is coincident to the Naveen Patnaik government which has been in power since March 2000 to date. Adopting the World Bank's Job Generation and Growth Decompositions tool (JoGGs) inspired by Shapley (1953. Contributions to the theory of games. Princeton University Press) decomposition method, we decompose growth across different sectors of its economy and examine how the per capita income growth is linked to changes in employment, output per worker, and population structure at the aggregate level and by sectors. We find there is a sharp decline in employment growth rate in the agriculture sector, a moderate growth in the mining sector, and a high growth only in the construction and a few service subsectors in Odisha. There has been significant output growth across industrial and service sectors and low growth in the agriculture‐sector. Low employment creation in the agriculture sector and negative employment growth in manufacturing sector have had implications for seasonal migration and rural agrarian distress in the state. The dismal overall trend in the employment growth makes it imperative on the part of the government to undertake serious policy interventions in Odisha.
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