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Explaining cross-state earnings inequality differentials in India: An RIF decomposition approach

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  • Carlos Gradín

Abstract

Despite the relevance of geographical disparities in India, earnings inequality occurs mostly within states, but with a broad range of variability in its levels. We investigate the sources of such variability using RIF decompositions of the inequality gaps between most populous states and India. Our results point to substantial compositional effects associated with cross-state variability in the extent of high-skilled formal employment outside the farm and construction sectors, and along the degree of urbanization and some demographic factors.

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  • 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).
    • Handle: RePEc:unu:wpaper:wp-2018-24
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    1. Samidh Pal, 2023. "A Comparative Study of Inter-Regional Intra-Industry Disparity," Papers 2304.02430, arXiv.org.
    2. Simontinti Das & Amrita Chatterjee, 2021. "Role of ICT Dissemination and Digital Finance in Poverty Eradication and Income Inequality Reduction: A Sub-national Level Study from India," Working Papers 2021-210, Madras School of Economics,Chennai,India.

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