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We took their poverty rates as the dependent variable(NOSE 209-10) and independent variables as unemployment rate and literacy rates(Census 2011) The purpose was to see if unemployment and illiteracy were the prime factors that caused poverty in India. Since various policy measures have been adopted to eradicate poverty by way of encouraging literacy and Job creation, our aim was, in a way, to study the effects of such policy measures as well. The poverty rate is defined as “The percent of the population living below the poverty line. The poverty line is the amount of money deemed necessary for a family (which could be defined as Just one person) to live. That poverty line is determined by the federal government. Poverty in India is widespread, with the nation estimated to have a third of the world’s poor. In 2010, the World Bank reported that 32. 7% of the total Indians fall below the international poverty line of IIS$ 1. 25 per day (APP) while 68. 7% lives on less than IIS$ 2 per day. Though many people care about the number of unemployed individuals, economists typically focus on the unemployment rate.
This corrects for the normal increase in the number of people employed due to increases n population and increases in the labor force relative to the population. The unemployment rate is expressed as a percentage, and is calculated as the no. Of unemployed workers divided by the total labor force. As defined by the International Labor Organization, “unemployed workers” are those who are currently not working but are willing and able to work for pay, currently available to work, and have actively searched for work.