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Revisiting between-group inequality measurement : an application to the dynamics of caste inequality in two Indian villages

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  • Lanjouw, Peter
  • Rao, Vijayendra

Abstract

Standard approaches to decomposing how much group differences contribute to inequality rarely show significant between-group inequality, and are of limited use in comparing populations with different numbers of groups. This study applies an adaptation to the standard approach that remedies these problems to longitudinal household data from two Indian villages -- Palanpur in the north, and Sugao in the west. The authors find that in Palanpur the largest scheduled caste group failed to share in the gradual rise in village prosperity. This would not have emerged from standard decomposition analysis. However, in Sugao the alternative procedure did not yield any additional insights because income gains applied relatively evenly across castes.

Suggested Citation

  • Lanjouw, Peter & Rao, Vijayendra, 2010. "Revisiting between-group inequality measurement : an application to the dynamics of caste inequality in two Indian villages," Policy Research Working Paper Series 5337, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5337
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    References listed on IDEAS

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    7. Elbers, Chris & Lanjouw, Peter & Mistiaen, Johan A. & Ozler, Berk, 2005. "Re-interpreting sub-group inequality decompositions," Policy Research Working Paper Series 3687, The World Bank.
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    Cited by:

    1. Abraham, Vinoj, 2012. "Wages and earnings of marginalized social and religious groups in India: Data sources, scope, limitations and suggestions," MPRA Paper 37799, University Library of Munich, Germany.
    2. Girard, Victoire, 2018. "Don’t Touch My Road. Evidence from India on Affirmative Action And Everyday Discrimination," World Development, Elsevier, vol. 103(C), pages 1-13.
    3. Yalonetzky, Gaston, 2012. "Measuring group disadvantage with inter-distributional inequality indices: A critical review and some amendments to existing indices," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 6, pages 1-32.
    4. Peter Lanjouw & Rinku Murgai & Nicholas Stern, 2013. "Nonfarm diversification, poverty, economic mobility, and income inequality: a case study in village India," Agricultural Economics, International Association of Agricultural Economists, vol. 44(4-5), pages 461-473, July.
    5. Mosse, David, 2018. "Caste and development: Contemporary perspectives on a structure of discrimination and advantage," World Development, Elsevier, vol. 110(C), pages 422-436.
    6. Vikas Rawal & Madhura Swaminathan, 2011. "Income Inequality and Caste in Village India," Journal, Review of Agrarian Studies, vol. 1(2), pages 108-133, July-Dece.

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    More about this item

    Keywords

    Inequality; Rural Poverty Reduction; Poverty Impact Evaluation; Equity and Development; Services&Transfers to Poor;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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