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Spatial Income Inequality in India, 1993-2011: A District Level Decomposition

Author

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  • Azam, Mehtabul

    (Oklahoma State University)

  • Bhatt, Vipul

    (James Madison University)

Abstract

Using nationally representative household survey data, and district and state as two levels of aggregation, we examine role of individual and geographical factors in determining the level and the change in income inequality in India. We find that between-state income differences account for the majority of between-district income inequality in rural India in 2011. However, in urban India within-state income differences explain most of the between- district inequality in 2011. We also find that the between-district component accounts for one-third of the increase in total income inequality in rural India between 1993 and 2011. We find significantly smaller level of inequality but similar trends using the consumption expenditure data.

Suggested Citation

  • Azam, Mehtabul & Bhatt, Vipul, 2016. "Spatial Income Inequality in India, 1993-2011: A District Level Decomposition," IZA Discussion Papers 9892, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9892
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Carlos Gradín, 2018. "Explaining cross-state earnings inequality differentials in India: An RIF decomposition approach," WIDER Working Paper Series 024, World Institute for Development Economic Research (UNU-WIDER).
    2. Abhiroop Mukhopadhyay & David Garcés Urzainqui, 2018. "The dynamics of spatial and local inequalities in India," WIDER Working Paper Series 182, World Institute for Development Economic Research (UNU-WIDER).
    3. Abhiroop Mukhopadhyay & David Garcés Urzainqui, 2018. "The dynamics of spatial and local inequalities in India," WIDER Working Paper Series wp-2018-182, World Institute for Development Economic Research (UNU-WIDER).
    4. Sabyasachi Tripathi, 2017. "Source of Inequality in Consumption Expenditure in India: A Regression Based Inequality Decomposition Analysis," Journal of Income Distribution, Ad libros publications inc., vol. 25(1), pages 1-34, March.
    5. Vladimir Hlasny, 2017. "Different Faces of Inequality across Asia: Decomposition of Income Gaps across Demographic Groups," LIS Working papers 691, LIS Cross-National Data Center in Luxembourg.
    6. Carlos Gradín, 2018. "Explaining cross-state earnings inequality differentials in India: An RIF decomposition approach," WIDER Working Paper Series wp-2018-24, World Institute for Development Economic Research (UNU-WIDER).
    7. Datta, Pritam & Dubey, Jay Dev & Choudhury, Mita, 2022. "Progressivity of Public Spending on Health care at the Sub-state Level in India: An Empirical Investigation in Tamil Nadu and Bihar," Working Papers 22/375, National Institute of Public Finance and Policy.

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    More about this item

    Keywords

    regional inequality; income inequality; India;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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