This paper reviews the limited panel data based literature on chronic poverty in India as also the literature on other countries. It then uses panel data that longitudinally track 3,139 households in rural India to try to provide an initial identification and understanding of the characteristics of households that exhibit mobility out of poverty and of those that simply stay poor. The paper draws attention to the policy implications of this analysis.
In the next section of the paper, we present a review of some of the panel data based literature on chronic poverty. Section 3 provides information regarding the panel data set used for the analysis. Section 4 presents analysis of the incidence, mobility and persistence of poverty drawn from the panel data set while section 5 concludes the paper.
Issues in Chronic Poverty:Panel Data based Analysis, CPRC-IIPA Working Paper No. 6, Chronic Poverty Research Centre (CPRC), Manchester, UK, 21 pp. [This paper has been published as a chapter in a book entitled Chronic Poverty in India, edited by Aasha Kapur Mehta, Sourabh Ghosh, Deepa Chatterjee, Nikhila Menon, IIPA/CPRC, 2003, 389 pp.]