TY - RPRT AU - Quiroga, Paola Andrea Barrientos AU - Blunch, Niels-Hugo AU - Gupta, Nabanita Datta TI - Income Convergence and the Flow out of Poverty in India, 1994-2005 PY - 2015/Mar/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 8929 UR - https://www.iza.org/index.php/publications/dp8929 AB - This paper explores the dynamics of income and poverty of rural Indian households, 1994-2005. The estimation strategy consists of convergence analysis to test whether poor households are catching-up in terms of income, followed by transition analysis to test whether poor households are more likely to exit poverty than to remain poor. The identification strategy explicitly addresses issues pertaining to the potential endogeneity and measurement error of initial income and poverty. We find evidence of income convergence and a higher probability of exiting poverty than of remaining poor. The key variables driving these results are education, occupation and asset ownership. KW - IHDS & HDPI data KW - measurement error KW - endogeneity KW - poverty transition KW - income convergence ER -