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Growth and Inequality in India: Analysis of an Extended Social Accounting Matrix

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  • Pieters, Janneke

Abstract

Summary Based on an extended Social Accounting Matrix (SAM) for 2002-03, this study shows how sectoral growth in India affects inequality. A breakdown of the wage account into three educational levels and 10 sectors of employment improves the link between sectoral expansion and household income in the SAM. The results show that only agricultural growth reduces inequality, while growth in heavy manufacturing and services sectors raises inequality. Given India's current growth pattern, inequality is likely to increase further. In an analysis of the standard SAM growth in any sector would appear to reduce inequality, which underlines the importance of our extension.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 38 (2010)
Issue (Month): 3 (March)
Pages: 270-281

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Handle: RePEc:eee:wdevel:v:38:y:2010:i:3:p:270-281

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: sectoral growth inequality education Social Accounting Matrix Asia India;

References

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Citations

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Cited by:
  1. Klasen, Stephan & Pieters, Janneke, 2013. "What Explains the Stagnation of Female Labor Force Participation in Urban India?," IZA Discussion Papers 7597, Institute for the Study of Labor (IZA).
  2. Pieters, Janneke & Klasen, Stephan, 2011. "Drivers of female labour force participation in urban India during India's Economic Boom," Proceedings of the German Development Economics Conference, Berlin 2011 65, Verein für Socialpolitik, Research Committee Development Economics.
  3. Alvaro Gallardo & Cristian Mardones, 2013. "Environmentally extended social accounting matrix for Chile," Environment, Development and Sustainability, Springer, vol. 15(4), pages 1099-1127, August.
  4. Ojha, Vijay P. & Pradhan, Basanta K. & Ghosh, Joydeep, 2013. "Growth, inequality and innovation: A CGE analysis of India," Journal of Policy Modeling, Elsevier, vol. 35(6), pages 909-927.
  5. Klasen, Stephan & Pieters, Janneke, 2012. "Push or Pull? Drivers of Female Labor Force Participation during India's Economic Boom," IZA Discussion Papers 6395, Institute for the Study of Labor (IZA).

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