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Earnings Inequality in Sri Lanka

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  • Arun, Thankom G.
  • Borooah, Vani

Abstract

Since the 1990s, accelerating economic growth has regained its dominance in the anti poverty strategies. However, the rising tendency of income inequity at the global level and within the countries emphasizes the need to incorporate distributional factors to make the pro-poor growth strategies effective. This paper explores the sources of this surge in income inequality in a developing country context. The paper attempts to estimate an earnings function for Sri Lanka based on the household expenditure survey. The earners are distinguished by ethnicity, gender, sectors of employment, place of residence, education and occupation. One of the significant results of this study is that there was no "ethnic effect" per se on earnings on Sri Lanka. Having seen a significant gender effect in earnings, the paper further attempts to calculate the degree to which this gender difference in earnings represents "discrimination" against women.

Suggested Citation

  • Arun, Thankom G. & Borooah, Vani, 2004. "Earnings Inequality in Sri Lanka," Development Economics and Public Policy Working Papers 30548, University of Manchester, Institute for Development Policy and Management (IDPM).
    • Handle: RePEc:ags:idpmde:30548
    DOI: 10.22004/ag.econ.30548
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    References listed on IDEAS

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    More about this item

    Keywords

    Labor and Human Capital;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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