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COVID-19 and Impact on Income Inequality: The Indian Experience

In: COVID-19 Pandemic and Global Inequality

Author

Listed:
  • Sovik Mukherjee

    (St. Xavier’s University)

Abstract

With global inequality falling, income inequality in India has increased during the period 1990–2019. With the occurrence of COVID-19, the trend of increasing income inequality in India is expected to not only continue but worsen. The chapter analyses the data from the CMIE’s (Centre for Monitoring Indian Economy) Consumer Pyramids Households Survey, corresponding to the first wave ranging from February 2020–December 2020, the Delta wave period spanning from January 2021 to July 2021 and the OMICRON wave period ranging from November 2021–February 2022. Interestingly, it shows that between January 2021–July 2021 inequality had fallen relative to February 2020–December 2020 period while it rose between November 2021–February 2022 as compared to the January 2021–July 2021 period. Primarily, the fall in income inequality is on account of the larger fall in income among the upper income households and a smaller decline in the earnings observed among the lower income households. The contribution of the study is employing data that is relatively novel to the literature, thus, enabling a deeper empirical analysis of the trends in inequality, particularly, in the context of a developing country like India for policy purposes.

Suggested Citation

  • Sovik Mukherjee, 2023. "COVID-19 and Impact on Income Inequality: The Indian Experience," Springer Books, in: Rajib Bhattacharyya & Ramesh Chandra Das & Achintya Ray (ed.), COVID-19 Pandemic and Global Inequality, chapter 0, pages 295-303, Springer.
    • Handle: RePEc:spr:sprchp:978-981-99-4405-7_18
    DOI: 10.1007/978-981-99-4405-7_18
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