INCOME INEQUALITY IN INDIA
Download
1 / 16

INCOME INEQUALITY IN INDIA - PowerPoint PPT Presentation


  • 112 Views
  • Uploaded on

INCOME INEQUALITY IN INDIA. MADHURA SWAMINATHAN AND VIKAS RAWAL. There is an impression – both within India and outside – that India is a country of relatively low income inequality.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' INCOME INEQUALITY IN INDIA' - stacey-curtis


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

INCOME INEQUALITY IN INDIA

MADHURA SWAMINATHAN AND VIKAS RAWAL


  • There is an impression – both within India and outside – that India is a country of relatively low income inequality.

  • India’s Gini index more favourable that those of comparable countries like South Africa, Brazil … China, and even the USA, which are otherwise ranked very high in human development.

  • India 36.8

  • South Africa 57.8

  • Brazil 55

  • China 41.5

  • USA 40.8

    Source: HDR 2010 cited in Economic Survey 2010-2011


  • Income versus expenditure inequality that India is a country of relatively low income inequality.

  • Comparing non-comparables, like tea and rice

  • Inequality in expenditure less than inequality in incomes

  • Savings of rich households

  • Expenditure of poor households (dis-saving)

  • Levels versus trends


Income data from ncaer
INCOME DATA FROM NCAER that India is a country of relatively low income inequality.

  • National Council for Applied Economic Research (NCAER)

  • 1993: covered 16 States and 35,130 households

  • 2005: covered all States and 26,734 rural households and 14,820 urban households

  • Estimates of income inaccurate

  • Aggregated (recall problems)

  • Non-standardised questions

  • Consistency across households



Villages surveyed in 2006 and 2007 table 1 location of survey villages
VILLAGES SURVEYED IN 2006 AND 2007 2004-05 (Azam and Shariff 2009)Table 1 Location of survey villages


Methodology
Methodology 2004-05 (Azam and Shariff 2009)

  • Income includes all cash and kind incomes.

  • All incomes are net of costs incurred by the households in the process of production and income generation.

  • The surveys used a comprehensive definition of incomes, and included detailed modules on incomes from crop cultivation, from animal husbandry and from wage labour, as well as from salaried employment, non-agricultural self-employment, rent and other transfers.

  • A total of 20 sources of income were used to construct the final income variable.

  • Survey years: 2005-06 (5 villages) and 2006-07 (3 villages)

  • All incomes at 2005-06 prices


Table 2 mean and median annual household incomes in rs
Table 2 2004-05 (Azam and Shariff 2009)Mean and median annual household incomes (in Rs)


Table 3 mean per capita income study villages in rs per annum at 2005 06 prices
Table 3 2004-05 (Azam and Shariff 2009)Mean per capita income, study villages in Rs per annum at 2005-06 prices


Table 4 gini coefficients of per capita income by village in per cent
Table 4 2004-05 (Azam and Shariff 2009)Gini coefficients of per capita income, by village (in per cent)

Note. These are adjusted Gini coefficients, following Chen, Tsaur and Rhai (1982).

There were substantial variations across villages, although the common feature of the three villages with higher than average inequality was that they were canal-irrigated villages.


Table 5 gini coefficients of per capita income selected countries
Table 5 2004-05 (Azam and Shariff 2009)Gini coefficients of per capita income, selected countries

Palma (2006) and *from ESCAP Yearbook 2009.


Table 6 distribution of per capita income by decile study villages in per cent
Table 6 2004-05 (Azam and Shariff 2009)Distribution of per capita income by decile, study villages in per cent


Figure 1. Kernel density plots of per capita incomes for persons belonging to Dalit and Other households, Ananthavaram, Andhra Pradesh


Figure 2. Kernel density plots of per capita incomes for persons belonging to Dalit and Other households, Bukkacherla, Andhra Pradesh


Figure 3. Kernel density plots of per capita incomes for persons belonging to Dalit and Other households, 25 F Gulabewala, Rajasthan


ad