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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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  • Pieters, Janneke, 2010. "Growth and Inequality in India: Analysis of an Extended Social Accounting Matrix," World Development, Elsevier, vol. 38(3), pages 270-281, March.
  • Handle: RePEc:eee:wdevel:v:38:y:2010:i:3:p:270-281
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Lilia Endriana & Djoni Hartono & Tony Irawan, 2016. "Green economy priority sectors in Indonesia: a SAM approach," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(1), pages 115-135, January.
    3. Stephan Klasen & Janneke Pieters, 2015. "What Explains the Stagnation of Female Labor Force Participation in Urban India?," World Bank Economic Review, World Bank Group, vol. 29(3), pages 449-478.
    4. repec:bpj:ajlecn:v:8:y:2017:i:1:p:36:n:1 is not listed on IDEAS
    5. Alvaro Gallardo & Cristian Mardones, 2013. "Environmentally extended social accounting matrix for Chile," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(4), pages 1099-1127, August.
    6. Alexander Trynov, 2016. "Public-Private Investment Partnerships: Efficiency Estimation Methods," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 602-612.
    7. repec:ebl:ecbull:eb-17-00091 is not listed on IDEAS
    8. Bhattacharya, Sukanta & Saha, Sarani & Banerjee, Sarmila, 2016. "Income inequality and the quality of public services: A developing country perspective," Journal of Development Economics, Elsevier, vol. 123(C), pages 1-17.
    9. 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.
    10. M. Yusof Saari & Erik Dietzenbacher & Bart Los, 2014. "Income Distribution across Ethnic Groups in Malaysia: Results from a New Social Accounting Matrix," Asian Economic Journal, East Asian Economic Association, vol. 28(3), pages 259-278, September.
    11. 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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