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

About the journal
JournalIndira Gandhi Institute of Development Research, Mumbai Working Papers
Open AccessNo