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Education and Household Inequality Change: A Decomposition Analysis for India

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  • Janneke Pieters

Abstract

Rising returns to education have increased wage inequality in many developing countries, but their impact on inequality between households is less clear. This study asks how education contributed to household inequality in India during the period 1993–2004, using a regression based decomposition method. We find that rising returns to education of employees did not increase household inequality, because many household heads are self-employed. Instead, rising inequality in education contributed to higher inequality, partly because fertility declined more slowly among illiterates. These new insights into the education-inequality relationship in India underline the importance of household-level analysis to complement earnings inequality research.

Suggested Citation

  • Janneke Pieters, 2011. "Education and Household Inequality Change: A Decomposition Analysis for India," Journal of Development Studies, Taylor & Francis Journals, vol. 47(12), pages 1909-1924.
    • Handle: RePEc:taf:jdevst:v:47:y:2011:i:12:p:1909-1924
    DOI: 10.1080/00220388.2011.561323
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    Cited by:

    1. Mercado, Rogelio & Park, Cyn-Young & Zhuang, Juzhong, 2024. "Trends and drivers of income inequality in the Philippines, Thailand, and Viet Nam since the early 2000s: A decomposition analysis," Journal of Asian Economics, Elsevier, vol. 94(C).
    2. Reza Najarzadeh & Alireza Keikha & Hassan Heydari, 2021. "Dynamics of consumption distribution and economic fluctuations," Economic Change and Restructuring, Springer, vol. 54(3), pages 847-876, August.
    3. Sylvanus Gaku, 2022. "Understanding Ghana’s Expenditure Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1463-1480, December.
    4. Dorji Lethro & Takahiro Akita, 2019. "The roles of education in expenditure inequality in Bhutan: an analysis in an urban–rural context," Asia-Pacific Journal of Regional Science, Springer, vol. 3(2), pages 465-485, June.
    5. Mohsen Ayyash & Siok Kun Sek, 2020. "Decomposing Inequality in Household Consumption Expenditure in Malaysia," Economies, MDPI, vol. 8(4), pages 1-15, October.
    6. Pawde, Balu & Shaw, Tara Shankar & Trivedi, Pushpa L, 2022. "Household Consumption Expenditure Inequality in Rural India: 1993-94 to 2011-12," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 57(11).
    7. Dorji Lethro & Takahiro Akita, 2016. "Education and Expenditure Inequality in Bhutan: An Analysis based on 2007 and 2012 Household Survey Data," Working Papers EMS_2016_12, Research Institute, International University of Japan.
    8. Juzhong Zhuang & Peng Zhan & Shi Li, 2023. "Accounting for changes in income inequality in China, 2002–2018: evidence from household survey data," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 37(2), pages 3-26, November.

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