IDEAS home Printed from https://ideas.repec.org/p/ind/igiwpp/2021-009.html
   My bibliography  Save this paper

Spatial disparities in household earnings in India: Role of urbanization, sectoral inequalities, and rural-urban differences

Author

Listed:
  • S. Chandrasekhar

    (Indira Gandhi Institute of Development Research)

  • Karthikeya Naraparaju

    (Indian Institute of Management, Indore)

  • Ajay Sharma

    (Indian Institute of Management, Indore)

Abstract

This paper focuses on spatial disparities in household earnings in rural and urban India. A point of departure from the existing literature on inequality in India is that we focus on household earnings rather than consumption expenditure. We analyse data from the nationally representative Periodic Labour Force Survey 2018-19. We provide a rich description of distribution of rural and urban monthly per capita household earning at the national and sub-national level and estimates of earnings inequality. While there are a multitude of factors that affect the evolution of income inequality, we focus on the salience of urbanization in explaining differences in inequality at the sub-national level vis a vis India. The results of the decomposition exercise help identify the proximate factors behind inequality differentials across various states. We situate our findings within the Kuznets framework and the stylized facts in the extant literature

Suggested Citation

  • S. Chandrasekhar & Karthikeya Naraparaju & Ajay Sharma, 2021. "Spatial disparities in household earnings in India: Role of urbanization, sectoral inequalities, and rural-urban differences," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2021-009, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2021-009
    as

    Download full text from publisher

    File URL: http://www.igidr.ac.in/pdf/publication/WP-2021-009.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Households Earnings; Inequality; Urbanization; India; Decomposition;
    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
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ind:igiwpp:2021-009. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Shamprasad M. Pujar (email available below). General contact details of provider: https://edirc.repec.org/data/igidrin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.