Measuring economic mobility in India using noisy data: a partial identification approach

Abstract We examine economic mobility in India while accounting for misclassification to better understand the welfare effects of rise inequality. To proceed, we extend recently developed methods on partial identification transition matrices. Allowing modest misclassification, find overall has been remarkably low: at least 65% poor households remained or at-risk being between 2005 and 2012. also Muslims, lower caste groups, rural are a more disadvantageous position compared Hindus, upper urban households. These findings cast doubt conventional wisdom that marginalized catching up.