Municipal electoral competition and the economic condition of households: evidence from the slums of Kolkata

Indranil De*, Vidhya Unnikrishnan

*Corresponding author for this work

Research output: Preprint/Working paperWorking paper

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Abstract

The effect of political competition on growth and other economic outcomes has largely been examined in the context of developed countries. Most available literature examines the effect of political and economic variables at the regional and national levels, which conceal several heterogeneities. We address these limitations by taking the case of a developing country – India – and examining the effect of competition and fragmentation on economic outcomes such as employment, income, expenditure and inequality at the urban local body level (the lowest tier of urban governance). For this purpose, we collected primary data in slums in the major metropolitan region of Kolkata in 2012 and 2022. Our empirical findings suggest that political clout, political competition and political connection influence the choice of occupation in slum households. The positive effect of the political clout variable on some employment categories (government sector) and not others (small businesses) highlights the close link between economic mobility and political connection, which can perpetuate socioeconomic inequality. We also observe similar effects on per capita income and consumption. Further, competition reduces inequality. The results suggest the need for India to consider planned development rather than development through political incentives. The current pattern of development through political incentives fails to develop skills and entraps slum dwellers in poverty.
Original languageEnglish
Publication statusPublished - 2024

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