Contribution of the urban poor: Evidence from Chennai, India

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.