Chronic Poverty and Schooling in India

The concept of poverty is multidimensional. The variables chosen for defining the multidimensional concept of poverty and grouped into housing, occupation, education, food security, access to financial institutions and beneficiary programme along with factor. First, a composite wealth index will be computed using PCA on a set of 12 variables, covering above broad areas. Poverty experienced by individuals and households for extended periods of time or throughout their entire lives is called chronic poverty .The data on chronic poverty is sparse and, mainly depends on panel data, at two point of time with a number of variables on economic and social dimension. Understanding the need, one of the major contributions of this research is to define a methodology to identify the poor, and particularly the chronic poor. Third, along with the classification of poor, perception of poor on intergenerational economic status, that is, how the household perceive the economic condition compared to his/her parents, will adopted to classify the chronic poor.