Asia-Pacific Development Journal Vol. 21, No. 2, December 2014 CONTRIBUTION OF THE URBAN POOR: EVIDENCE FROM CHENNAI, INDIA Kala Seetharam Sridhar and A.Venugopala Reddy* In the present paper, evidence is gathered on the contribution of the poor to the city economy, using the case of Chennai in India based on large primary surveys. We find that gender, education level and the salary status of the urban poor have a significant impact on their income. The paper takes into account the contribution made by informal enterprises located in the slums of the city. By aggregating across households and enterprises based on the primary surveys and extending this contribution to all slums in the city, we find that slums, which contain 19 per cent of the population of Chennai, contribute to 14 per cent of the city’s economy. The paper summarizes the policy implications of the research. JEL Classification: I32, J31, O15, O18. Key words: Urban poor, cities — India, contribution of urban poor, urban poverty — Chennai. • Kala Seetharam Sridhar, Professor, Centre for Research in Urban Affairs, Institute for Social and Economic Change, Dr. VKRV Rao Road, Nagarabhavi, Bengaluru 560072, India, corresponding author, (Tel: +91-80-23210106 (direct); e-mail:
[email protected],
[email protected], kalaseetharam @gmail.com); A.Venugopala Reddy, Centre for Symbiosis of Technology, Environment and Management (STEM), 11 & 12, 1st Floor, BDA Complex, Koramangala, Bengaluru 560034, India (Tel: +91-94483- 10808; e-mail:
[email protected]). We thank the South Asia Network of Economic Research Institutes (SANEI) for funding this important idea to roll out in Chennai as part of its 13th Regional Research Competition (RRC), when we were both with Public Affairs Centre.