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Class matters: tracking urban inequality in post-liberalization India using a durables-based mixture model

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  • Sudeshna Maitra

Abstract

We identify the (urban) lower, middle and upper classes in India in 1993–1994, 1999–2000 and 2004–05, using a durables-based mixture model after Maitra (2016). This approach allows a comparison of Indian consumption inequality in the 1990s, despite the well-documented non-comparability of expenditure data from this period. Shorrock’s (1980) inequality index is then used to break up inequality into between-class and within-class components. We find evidence that the interim year 1999–2000 was a year of transition (following economic liberalization in 1991), and that between-class inequality became more pronounced in the later years, relative to within-class inequality.

Suggested Citation

  • Sudeshna Maitra, 2017. "Class matters: tracking urban inequality in post-liberalization India using a durables-based mixture model," Applied Economics Letters, Taylor & Francis Journals, vol. 24(17), pages 1203-1207, October.
    • Handle: RePEc:taf:apeclt:v:24:y:2017:i:17:p:1203-1207
    DOI: 10.1080/13504851.2016.1265071
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    1. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    2. Mark Montgomery & Michele Gragnolati & Kathleen Burke & Edmundo Paredes, 2000. "Measuring living standards with proxy variables," Demography, Springer;Population Association of America (PAA), vol. 37(2), pages 155-174, May.
    3. Maitra, Sudeshna, 2016. "The poor get poorer: Tracking relative poverty in India using a durables-based mixture model," Journal of Development Economics, Elsevier, vol. 119(C), pages 110-120.
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