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Inequality, urbanization, and the Kuznets process: Evidence from India's Annual Periodic Labour Force Surveys

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  • S. Chandrasekhar
  • Karthikeya Naraparaju
  • Ajay Sharma

Abstract

We provide annual estimates of inequality in monthly per capita household earnings in India over the period 2017/18 to 2022/23 based on analysis of India's Periodic Labour Force Surveys. Over the six years, the estimate of inequality as measured by the Gini coefficient is in the range of 0.40 to 0.44 and, as measured by the Mean Log Deviation, between 0.28 and 0.34. We find that a 1 percentage point increase in the level of urbanization may increase the Mean Log Deviation by 0.5 to 0.7 per cent.

Suggested Citation

  • S. Chandrasekhar & Karthikeya Naraparaju & Ajay Sharma, 2025. "Inequality, urbanization, and the Kuznets process: Evidence from India's Annual Periodic Labour Force Surveys," WIDER Working Paper Series wp-2025-15, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2025-15
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    References listed on IDEAS

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    1. Gaurav Datt & Martin Ravallion & Rinku Murgai, 2020. "Poverty and Growth in India over Six Decades," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 4-27, January.
    2. Anthony Shorrocks & Guanghua Wan, 2005. "Spatial decomposition of inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 59-81, January.
    3. Rohit Lamba & Arvind Subramanian, 2020. "Dynamism with Incommensurate Development: The Distinctive Indian Model," Journal of Economic Perspectives, American Economic Association, vol. 34(1), pages 3-30, Winter.
    4. Dongjie Wu & Prasada Rao, 2017. "Urbanization and Income Inequality in China: An Empirical Investigation at Provincial Level," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(1), pages 189-214, March.
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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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