District-Level Estimates of Poverty Incidence for the State of West Bengal in India: Application of Small Area Estimation Technique Combining NSSO Survey and Census Data

Abstract

Despite having long term efforts, poverty is an important and persistent social issue in India. Existing data based on socio-economic surveys produce state and nationally representative poverty estimates but cannot be used directly to generate reliable disaggregate or local level estimates. The state and national level estimates often mask the variations at the local level which in turn restricts the effective implementation of policies related to poverty alleviation locally within and between administrative units. This paper uses the Household Consumer Expenditure Survey data of NSSO and link with the Population Census data to produce the reliable district-level estimates of poverty incidence in the rural areas of West Bengal in India. In particular, small area estimation (SAE) method is explored to generate reliable district-level poverty estimates. The results clearly indicate that the district-level estimates generated by model-based SAE method are precise and representative. A map showing how poverty incidence varies by district across the State of West Bengal is also produced. The estimates generated from this research are useful for meeting the data requirements for policy research and strategic planning by different international organizations and by Departments and Ministries in the Government of India.