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Welfare Dynamics in India over a Quarter Century: Poverty, Vulnerability, and Mobility during 1987-2012

Hai-Anh Dang () and Peter F. Lanjouw ()
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Peter F. Lanjouw: Vrije Universiteit Amsterdam

No 13215, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We analyze the Indian National Sample Survey data spanning 1987/88–2011/12 to uncover patterns of transition into and out of different classes of the consumption distribution. At the aggregate level, income growth has accelerated, accompanied by accelerating poverty decline. Underlying these trends is a process of mobility, with 40–60 percent of the population transitioning between consumption classes and increasing mobility over time. Yet, the majority of those who escape poverty remain vulnerable. Most of those who are poor were also poor in the preceding period and, thus, are likely to be chronically poor. The characteristics of upwardly mobile households contrast with those of the poor; these households are also far less likely to experience downward mobility. We also find that states exhibit heterogenous mobility patterns.

Keywords: India; synthetic panel; imputation; welfare dynamics; intra-generational mobility; National Sample Survey (search for similar items in EconPapers)
JEL-codes: C15 I32 O15 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2020-05
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Working Paper: Welfare Dynamics in India over a Quarter Century: Poverty, Vulnerability, and Mobility during 1987-2012 (2020) Downloads
Working Paper: Welfare Dynamics in India over a Quarter Century: Poverty, Vulnerability, and Mobility during 1987-2012 (2020) Downloads
Working Paper: Welfare Dynamics in India over a Quarter Century: Poverty, Vulnerability, and Mobility during 1987-2012 (2020) Downloads
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