IDEAS home Printed from https://ideas.repec.org/a/jed/journl/v43y2018i2p45-66.html
   My bibliography  Save this article

The Income Transition in Rural India: Evidence from Aris/Reds Surveys

Author

Listed:
  • Kailash Chandra Pradhan and Shrabani Mukherjee

    (National Institute of Labour Economics Research and Development and Symbiosis School of Economics)

Abstract

Measuring changes in inequality helps determine the effectiveness of policies aimed at correcting inequality and generates the data necessary to use inequality as an explanatory variable in policy analysis. Income inequality per period and income mobility across periods can be pooled into one overall measure of multiple period inequality. This paper highlights some aspects of structural changes and examines its impact on economic mobility in Indian rural economy. We have used a unique Additional Rural Income Survey/Rural Economic & Demographic Survey (ARIS/REDS) surveys data set for rural India spanning 3 decades to determine the reasons and magnitude of income mobility. The triggers, that have been identified, include land ownership, affirmative action program and occupation. The income mobility continues to be low. Further, the land reforms and advantages from affirmative action programs have not made any significant impact on the income mobility for the rural households in India over the periods.

Suggested Citation

  • Kailash Chandra Pradhan and Shrabani Mukherjee, 2018. "The Income Transition in Rural India: Evidence from Aris/Reds Surveys," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(2), pages 45-66, June.
    • Handle: RePEc:jed:journl:v:43:y:2018:i:2:p:45-66
    as

    Download full text from publisher

    File URL: http://jed.or.kr/full-text/43-2/3.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sonalde Desai & Veena Kulkarni, 2008. "Changing educational inequalities in india in the context of affirmative action," Demography, Springer;Population Association of America (PAA), vol. 45(2), pages 245-270, May.
    2. Cowell, Frank & Schluter, Christian, 1998. "Income mobility : a robust approach," LSE Research Online Documents on Economics 2210, London School of Economics and Political Science, LSE Library.
    3. Ira N. Gang & Kunal Sen & Myeong-Su Yun, 2017. "Is Caste Destiny? Occupational Diversification among Dalits in Rural India," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(2), pages 476-492, April.
    4. Viktoria Hnatkovska & Amartya Lahiri & Sourabh B. Paul, 2013. "Breaking the Caste Barrier: Intergenerational Mobility in India," Journal of Human Resources, University of Wisconsin Press, vol. 48(2), pages 435-473.
    5. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
    6. Zsuzsa Kapitány & György Molnár, 2004. "Inequality and Income Mobility in Hungary, 1993–1998," Europe-Asia Studies, Taylor & Francis Journals, vol. 56(8), pages 1109-1129.
    7. Dardanoni Valentino, 1993. "Measuring Social Mobility," Journal of Economic Theory, Elsevier, vol. 61(2), pages 372-394, December.
    8. Gulgun Bayaz-Ozturk & Richard V. Burkhauser & Kenneth A. Couch, 2014. "Consolidating The Evidence On Income Mobility In The Western States Of Germany And The United States From 1984 To 2006," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 431-443, January.
    9. Fields, Gary S. & Ok, Efe A., 1996. "The Meaning and Measurement of Income Mobility," Journal of Economic Theory, Elsevier, vol. 71(2), pages 349-377, November.
    10. Li, Hongyi & Squire, Lyn & Zou, Heng-fu, 1998. "Explaining International and Intertemporal Variations in Income Inequality," Economic Journal, Royal Economic Society, vol. 108(446), pages 26-43, January.
    11. Gaiha, Raghav, 1988. "Income Mobility in Rural India," Economic Development and Cultural Change, University of Chicago Press, vol. 36(2), pages 279-302, January.
    12. Facundo Alvaredo & Thomas Piketty & Emmanuel Saez & Lucas Chancel & Gabriel Zucman, 2018. "World Inequality Report 2018," PSE-Ecole d'économie de Paris (Postprint) halshs-01885458, HAL.
    13. King, Mervyn A, 1983. "An Index of Inequality: With Applications to Horizontal Equity and Social Mobility," Econometrica, Econometric Society, vol. 51(1), pages 99-115, January.
    14. Ding, Ning & Wang, Yougui, 2008. "Household income mobility in China and its decomposition," China Economic Review, Elsevier, vol. 19(3), pages 373-380, September.
    15. Gaiha, Raghav & Deolalikar, Anil B, 1993. "Persistent, Expected and Innate Poverty: Estimates for Semi-arid Rural South India, 1975-1984," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 17(4), pages 409-421, December.
    16. Nicolas Herault, 2015. "How Income Mobility and Income Growth Explain Income Inequality Trends," Melbourne Institute Working Paper Series wp2015n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    17. Majumder, Rajarshi, 2010. "Intergenerational mobility in educational & occupational attainment: a comparative study of social classes in India," MPRA Paper 40939, University Library of Munich, Germany.
    18. Wojciech Kopczuk & Emmanuel Saez & Jae Song, 2010. "Earnings Inequality and Mobility in the United States: Evidence from Social Security Data Since 1937," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(1), pages 91-128.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rishi Kumar, 2022. "Household poverty dynamics in tribal Madhya Pradesh, India: A case study of 54 villages," Poverty & Public Policy, John Wiley & Sons, vol. 14(2), pages 184-203, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kailash Chandra Pradhan & Shrabani Mukherjee & Shrabani Mukherjee, 2015. "The Income Mobility in Rural India: Evidence From ARIS/ REDS Surveys," Working Papers 2015-109, Madras School of Economics,Chennai,India.
    2. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Mehtabul Azam, 2022. "Household income mobility in India, 1993–2011," Review of Development Economics, Wiley Blackwell, vol. 26(4), pages 1902-1943, November.
    4. Sandhya R. Mahapatro & Renu Choudhary, 2022. "Intergenerational educational and occupational mobility among scheduled castes in rural Bihar," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 24(1), pages 65-84, June.
    5. Satya R. Chakravarty & Nachiketa Chattopadhyay & Nora Lustig & Rodrigo Aranda, 2020. "Measuring Directional Mobility: The Bartholomew and Prais-Bibby Indices Reconsidered," Research on Economic Inequality, in: Inequality, Redistribution and Mobility, volume 28, pages 75-96, Emerald Group Publishing Limited.
    6. Baochun Peng & Haidong Yuan, 2021. "Dynamic Fairness: Mobility, Inequality, and the Distribution of Prospects," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(4), pages 1314-1338, October.
    7. Almas Heshmati, 2006. "Continental And Sub-Continental Income Inequality," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 7-52, January.
    8. Joachim Jarreau, 2015. "The Impact of Naturalizations on Job Mobility and Wages: Evidence from France," Working Papers halshs-01117449, HAL.
    9. Luis Ayala & Mercedes Sastre, 2004. "Europe vs. the United States: is there a trade-off between mobility and inequality?," Journal of Income Distribution, Ad libros publications inc., vol. 13(1-2), pages 4-4, March-Jun.
    10. Peter Gottschalk & Enrico Spolaore, 2002. "On the Evaluation of Economic Mobility," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(1), pages 191-208.
    11. VAN KERM Philippe, 2003. "What Lies Behind Income Mobility? Reranking and Distributional Change in Belgium, Western Germany and the USA," IRISS Working Paper Series 2003-03, IRISS at CEPS/INSTEAD.
    12. C. Schluter & D. Van De Gaer, 2003. "Mobility as distributional difference," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/182, Ghent University, Faculty of Economics and Business Administration.
    13. Gerhard Riener, 2012. "Inequality and mobility of household incomes in Europe: evidence from the ECHP," Applied Economics, Taylor & Francis Journals, vol. 44(3), pages 279-288, January.
    14. D'Agostino, Marcello & Dardanoni, Valentino, 2009. "The measurement of rank mobility," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1783-1803, July.
    15. Manasi Bera & Amaresh Dubey, 2020. "Structure and Changes in Household Income and Employment Across Social Groups in Rural India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 407-435, June.
    16. Manasi Bera & Amaresh Dubey, 0. "Structure and Changes in Household Income and Employment Across Social Groups in Rural India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 0, pages 1-29.
    17. Perugini, Cristiano, 2020. "Patterns and drivers of household income dynamics in Russia: The role of access to credit," BOFIT Discussion Papers 11/2020, Bank of Finland Institute for Emerging Economies (BOFIT).
    18. Antonio Andres & Carlyn Ramlogan-Dobson, 2011. "Is Corruption Really Bad for Inequality? Evidence from Latin America," Journal of Development Studies, Taylor & Francis Journals, vol. 47(7), pages 959-976.
    19. Duro, Juan Antonio, 2013. "International mobility in carbon dioxide emissions," Energy Policy, Elsevier, vol. 55(C), pages 208-216.
    20. Ricardo Fort, 2007. "Land inequality and economic growth: a dynamic panel data approach," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 159-165, September.

    More about this item

    Keywords

    Income Mobility; Measurement Error; Poverty; Primary Survey; Rural India;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jed:journl:v:43:y:2018:i:2:p:45-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sung Y. Park (email available below). General contact details of provider: https://edirc.repec.org/data/eccaukr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.