Poverty and Inequality: Role of Social Protection Programmes in a Backward Region of West Bengal

Abstract

The present paper examines the impact of social protection programmes on poverty and inequality in the backward region of West Bengal. The benefits from social protection programmes (SPPs) have reduced the incidence of poverty to the extent of 3.7 percentage points. It seems that in the case of relatively less poor households, the decreasing rate of poverty gap (PG) and square poverty gap (SPG) are less than in relatively poorer households. That indicates that relatively less poor households are more deprived (especially, double deprived) than relatively more poor households. The benefits of social protection programmes have also reduced the income inequality in both absolute and relative senses. In addition, the income of relatively poorer households has increased to a greater extent than of relatively less poor households. Absolute inequality in the presence of social protection is larger than absolute inequality in its absence. The study suggests that social protection programmes can be used as important tools for reducing inequality in the backward region of West Bengal.