Inequality and human development: How inclusive the growth is in Uttar Pradesh?

Abstract

Purpose

The present research has been conceptualized to make an inter-district analysis in terms of IHDI of Uttar Pradesh. It aims to provide district-wise estimates of HDI and IHDI with the latest available data, which may prove to be a critical policy input to the policy makers that how different districts are performing in terms of education, health and standard of living parameters and help in implementing tailor made policy actions.

Design/methodology/approach

The paper utilizes the Census of India data and unit-level data of National Sample Survey (NSS) for constructing HDI and IHDI. The broad framework for computing IHDI in this study is similar to the approach of UNDP's HDR 2010. To adjust the inequality aspect, the Atkinson inequality aversion parameter has been estimated at indicator level on the basis of NSS unit record data.

Findings

The study reveals that inequality discounted income index is on an average 30 percent lower than unadjusted income index. However, quite high variation exists in case of education and health. The difference ranges from 30 percent to 40 percent in the case of education and from 3 to 36 percent in the health dimension. The surprising fact which study finds that health infrastructure and education infrastructure are poorly correlated with their respective outcomes.

Research limitations/implications

The study offers a policy suggestion that increasing investment on educational and health infrastructure will not have any significant impact on their respective outcomes unless distributional inequalities are reduced. The study also suggests that rising income inequalities are threat to inclusive growth and sustainable development goals agenda. Thus, it recommends policy makers to take pro-active timely policy measures to reduce income inequalities. The educational achievement should be fixed in terms of average years of schooling and expected years of schooling rather than in terms of literacy rate.

Originality/value

The present research is an original work. This is the first study in the case of Uttar Pradesh which attempted to estimate district-wise IHDI following the internationally accepted UNDP (2010) methodology.

Citation

Maurya, N.K. and Kanaujiya, K.S. (2021), "Inequality and human development: How inclusive the growth is in Uttar Pradesh?", International Journal of Sociology and Social Policy, Vol. 41 No. 7/8, pp. 765-785. https://doi.org/10.1108/IJSSP-03-2020-0107