Risks and responses among the urban poor in India

This paper describes the events faced by urban poor households in Lucknow, India and household responses in the face of these events. Using household and individual data collected in 2002 from 12 slum settlements, the authors found that certain events, such as illness and social and religious spending, are more frequent than others and that some groups, characterized by gender of head of household, community and economic status, experience certain event types more than others. It also found that some less frequent events may be very burdensome due to their high severity. Responses to common event types exhibited a pattern. Households reduced consumption, used savings and took loans much more frequently than other options, across event types. Variations in responses were identified by event type and severity and economic status. The results illustrate the need for both protective and promotive interventions to improve livelihood security among the urban poor.