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Poverty dynamics in rural Orissa: Transitions in assets and occupations over generations

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  • Magnus Hatlebakk

Abstract

We investigate whether historic land distribution determines stagnation or development of Indian villages. The empirical analysis is motivated by the Banerjee and Newman (1993) model of occupational choice and economic development. Family histories are collected for a random sample of 800 households. Households are classified into economic categories according to the assets-occupations mix at present and at grandfather's time. Transitions are described, and for a remote district explained, by the historic village land distribution. We also investigate the role of social identity, and find that scheduled tribes are more likely trapped in poverty than scheduled castes.

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  • Magnus Hatlebakk, 2012. "Poverty dynamics in rural Orissa: Transitions in assets and occupations over generations," CMI Working Papers 11, CMI (Chr. Michelsen Institute), Bergen, Norway.
  • Handle: RePEc:chm:wpaper:wp2012-11
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    References listed on IDEAS

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    1. Peter Lanjouw & Rinku Murgai, 2009. "Poverty decline, agricultural wages, and nonfarm employment in rural India: 1983-2004," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 243-263, March.
    2. Ghatak, Maitreesh & Nien-Huei Jiang, Neville, 2002. "A simple model of inequality, occupational choice, and development," Journal of Development Economics, Elsevier, vol. 69(1), pages 205-226, October.
    3. Magnus Hatlebakk, 2012. "Myopic preferences or subsistence income? Why do rickshaw cyclists rent the cycle?," CMI Working Papers 1, CMI (Chr. Michelsen Institute), Bergen, Norway.
    4. Abhijit Banerjee & Sendhil Mullainathan, 2010. "The Shape of Temptation: Implications for the Economic Lives of the Poor," Working Papers id:2484, eSocialSciences.
    5. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-298, April.
    6. Eswaran, Mukesh & Kotwal, Ashok, 1986. "Access to Capital and Agrarian Production Organisation," Economic Journal, Royal Economic Society, vol. 96(382), pages 482-498, June.
    7. Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 1-24.
    8. Magnus Hatlebakk, 2009. "Capacity-constrained Collusive Price Discrimination in the Informal Rural Credit Markets of Nepal," Review of Development Economics, Wiley Blackwell, vol. 13(1), pages 70-86, February.
    9. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer;Population Association of America (PAA), vol. 38(1), pages 115-132, February.
    10. George Akerlof, 1976. "The Economics of Caste and of the Rat Race and Other Woeful Tales," The Quarterly Journal of Economics, Oxford University Press, vol. 90(4), pages 599-617.
    11. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
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    Cited by:

    1. Thorat, Amit & Vanneman, Reeve & Desai, Sonalde & Dubey, Amaresh, 2017. "Escaping and Falling into Poverty in India Today," World Development, Elsevier, vol. 93(C), pages 413-426.
    2. Magnus Hatlebakk, 2013. "Intergenerational determinants of occupational choice: The case of international labor migration from Nepal," CMI Working Papers 2, CMI (Chr. Michelsen Institute), Bergen, Norway.

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    Keywords

    Poverty trap; Occupational choice;

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