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Wealth Inequality: Evidence from Two Villages in Bihar

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  • Madhura Swaminathan

    (Indian Statistical Institute, Bengaluru, madhura@isibang.ac.in)

  • Shruti Nagbhushan

    (PhD candidate, SOAS, University of London, shruti.gubbi@gmail.com)

Abstract

This paper examines inequality in ownership of wealth in two villages of North Bihar, drawing on data from the PARI surveys conducted in 2012. The analysis showed extreme levels of inequality, among the highest of the 23 villages surveyed by PARI. Inequality in wealth across socio-economic classes was extremely high, with the top one per cent of households comprising landlords and capitalist farmers owning the bulk of all assets of resident households and the class of manual workers owning a minuscule share of total assets. The present study provides concrete evidence of the vast gap between the wealth of a manual worker and a landlord. Land remained the most important component of household wealth, including among the very rich. Given the strong correlation between caste and class, we found, predictably, that Scheduled Castes were the group worst off in terms of asset ownership, with members of the Extremely Backward Classes close behind. There was heterogeneity among Backward Class (BC) households

Suggested Citation

  • Madhura Swaminathan & Shruti Nagbhushan, 2022. "Wealth Inequality: Evidence from Two Villages in Bihar," Journal, Review of Agrarian Studies, vol. 12(1), pages 66-89, January-J.
    • Handle: RePEc:fas:journl:v:12:y:2022:i:1:p:66-89
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    References listed on IDEAS

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    1. Dhar, Niladri Sekhar & Pandey, Mrityunjay & Kumar, Awanish, 2022. "Identifying Socio-Economic Classes in Two Villages of Bihar," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 12(1), June.
    2. Chavan, Pallavi, 2012. "Debt of Rural Households in India: A Note on the All-India Debt and Investment Survey," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 2(1), July.
    3. Amrita Datta & Gerry Rodgers & Janine Rodgers & Bkn Singh, 2014. "Contrasts in Development in Bihar: A Tale of Two Villages," Journal of Development Studies, Taylor & Francis Journals, vol. 50(9), pages 1197-1208, September.
    4. Kumar, Deepak, 2016. "Discrepancies in Data on Landholdings in Rural India: Aggregate and Distributional Implications," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 6(1), July.
    5. Kumar, Awanish, 2022. "Land and Caste Relations in North Bihar: Observations from Two Villages," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 12(1), June.
    6. Sreenivasan Subramanian & D. Jayaraj, 2006. "The Distribution of Household Wealth in India," WIDER Working Paper Series RP2006-116, World Institute for Development Economic Research (UNU-WIDER).
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    1. Billah, Mabruk & Hadhri, Sinda & Balli, Faruk & Sahabuddin, Mohammad, 2024. "Exploring the dynamic links, implications for hedging and investment strategies between Sukuk and commodity market volatility: Evidence from country level analysis," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 350-371.
    2. Kumar, Awanish, 2022. "Land and Caste Relations in North Bihar: Observations from Two Villages," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 12(1), June.

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