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The Evolution of Consumption and Wealth Inequality in India: A Quantitative Assessment

Author

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  • Subramanian Sreenivasan

    (Madras Institute of Development Studies, 79 Second Main Road, Gandhinagar, Adyar, Chennai 600 020, Tamil Nadu, India)

  • Jayaraj Dhairiyarayar

    (Madras Institute of Development Studies, 79 Second Main Road, Gandhinagar, Adyar, Chennai 600 020, Tamil Nadu, India)

Abstract

In this paper we undertake a fairly straightforward quantitative assessment of trends in inequality in the distribution of consumption expenditure and of household wealth in India. While it is customary to employ, in applied work, only relative measures whose value basis is seldom subjected to any serious critical scrutiny, the present paper assesses inequality in terms of both absolute and intermediate measures, in addition to relative measures. It is found that our judgment of inequality trends is indeed influenced by the particular conception – relative, absolute or intermediate – of inequality that we may be inclined to favour. In particular, intermediate measures avoid the arguably “extreme” values underlying relative and absolute measures, and if we go by intermediate rather than relative indices, then we find that inequality in India must be judged to be increasing rather than essentially trend-less, as relative approaches to assessing inequality suggest.

Suggested Citation

  • Subramanian Sreenivasan & Jayaraj Dhairiyarayar, 2013. "The Evolution of Consumption and Wealth Inequality in India: A Quantitative Assessment," Journal of Globalization and Development, De Gruyter, vol. 4(2), pages 253-281, November.
    • Handle: RePEc:bpj:globdv:v:4:y:2013:i:2:p:253-281:n:2
    DOI: 10.1515/jgd-2013-0018
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    References listed on IDEAS

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    2. Arun Frey, 2018. "The case for convergence: assessing regional income distribution in Asia and the Pacific," Asia-Pacific Sustainable Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 25(2), pages 1-19, December.

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    More about this item

    Keywords

    Relative inequality; absolute inequality; intermediate inequality; consumption expenditure; household assets; India;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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