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How Lives ChangePalanpur, India, and Development Economics$
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Himanshu, Peter Lanjouw, and Nicholas Stern

Print publication date: 2018

Print ISBN-13: 9780198806509

Published to Oxford Scholarship Online: September 2018

DOI: 10.1093/oso/9780198806509.001.0001

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Poverty, Inequality, and Mobility in Palanpur

Poverty, Inequality, and Mobility in Palanpur

(p.299) 8 Poverty, Inequality, and Mobility in Palanpur*
How Lives Change


Peter Lanjouw

Nicholas Stern

Oxford University Press

Palanpur offers the rare opportunity to simultaneously examine levels and trends in poverty, inequality, and income mobility over an extended period. This chapter documents the evolution of these distributional outcomes and points to some striking changes over time. It shows that the forces of agricultural change and non-farm diversification have combined to generate rising per capita incomes and falling poverty in Palanpur. Such forces have also, in recent years, fostered social mobility, with some households from the traditionally poorest castes finding remunerative earning opportunities in the non-farm sector. However, income inequality has also risen sharply in Palanpur, and this process is also seen to have been strongly driven by the expansion of the non-farm sector. When a long-term perspective is taken, the chapter shows that intergenerational mobility—considered here in terms of the strength of association between the incomes of fathers and sons—has declined over the entire survey period.

Keywords:   poverty, inequality, intergenerational mobility, castes, agricultural change, non-farm diversification

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