Assessing reduction in multidimensional childhood poverty in India: a decomposition analysis

Area of Science:

• Poverty Studies
• Child Well-being
• Public Health Policy

Background:

• Multidimensional poverty disproportionately affects children globally, particularly in South Asia and Africa.
• In India, approximately one-third of children aged 0-4 experience multidimensional poverty.
• Understanding child poverty trends is crucial for effective policymaking in India.

Purpose of the Study:

• To examine trends in multidimensional child poverty (MCP) in India.
• To track poverty reduction efforts across different geographic regions, castes, and religious groups.
• To inform policy development for achieving Sustainable Development Goals.

Main Methods:

• Utilized the Alkire-Foster method to compute the Multidimensional Child Poverty Index (MCPI) for children aged 0-4.
• Employed data from two rounds of the National Family Health Survey (2015-16 and 2019-21).
• Applied Shapley decomposition to analyze the contributions of incidence and intensity to MCPI changes.

Main Results:

• The incidence of child poverty in India declined by over 40% (from 46.6% to 27.4%) between 2015-16 and 2019-21.
• The MCPI was halved, decreasing from 24.2% to 12.6% during the study period.
• While improvements were noted across most subgroups, children in rural areas, Scheduled Castes (SCs), Scheduled Tribes (STs), and Muslim households showed poorer performance. Key indicators like electricity, birth registration, and sanitation improved significantly.

Conclusions:

• Analyzing MCPI trends over time aids in identifying policy priorities for achieving Sustainable Development Goals.
• Targeted interventions are necessary to address persistent disparities in child poverty reduction.
• Improvements in basic amenities like sanitation and cooking fuel contribute to reducing multidimensional child poverty.