Poverty Nutrition Trap in Rural India

Australian National University Trade and Development Working Paper

33 Pages Posted: 5 Apr 2005

See all articles by Raghbendra Jha

Raghbendra Jha

Australian National University (ANU) - Australia South Asia Research Centre (ASARC); Crawford School of Public Policy

Raghav Gaiha

University of Delhi - Department of Economics; Australian National University (ANU)

Anurag Sharma

Monash University - Centre for Health Economics

Date Written: March 2005

Abstract

The contribution of the present paper is threefold. First, we formally test whether the effect of calorie deprivation on wages is more significant/higher for the lower quantiles of workers. In the extant literature this is established through non-linear terms in the wage equation. A more satisfactory method of doing this is through quantile regressions. Second, the quantile regression approach helps us identify the exact group for which the poverty-nutrition trap holds. The extant literature is unable to establish whether there are systematic differences across different quintiles in the response of productivity/wages to nutrition. The present paper addresses this lacuna. Third, we are able to establish a critical wage level for which the PNT trap hypothesis holds. For wages higher than this the hypothesis does not hold. We then argue that this value of the wage rate should set a floor for any minimum wage for agricultural labourers.

Keywords: Nutrition, calories, wages, poverty trap, labourers

JEL Classification: I12, I31, I32, J41

Suggested Citation

Jha, Raghbendra and Gaiha, Raghav and Sharma, Anurag, Poverty Nutrition Trap in Rural India (March 2005). Australian National University Trade and Development Working Paper. Available at SSRN: https://ssrn.com/abstract=695661 or http://dx.doi.org/10.2139/ssrn.695661

Raghbendra Jha (Contact Author)

Australian National University (ANU) - Australia South Asia Research Centre (ASARC) ( email )

Canberra, Australian Capital Territory 0200
Australia
+61 2 6125 2683 (Phone)
+61 2 6125 0443 (Fax)

HOME PAGE: http://crawford.anu.edu.au/crawford_people/content/staff/acde/rjha.php

Crawford School of Public Policy

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

Raghav Gaiha

University of Delhi - Department of Economics ( email )

Delhi-110007
India

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601
Australia

Anurag Sharma

Monash University - Centre for Health Economics ( email )

Building 75
Clayton
Melbourne, VIC 3800
Australia
61 3 99050519 (Phone)

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