Explaining cross-state earnings inequality differentials in India: An RIF decomposition approach

By: Carlos Gradín
Despite the relevance of geographical disparities in India, earnings inequality occurs mostly within states, but with a broad range of variability in its levels. We investigate the sources of such variability using RIF decompositions of the inequality gaps between most populous states and India. Our results point to substantial compositional effects associated with cross-state variability in the extent of high-skilled formal employment outside the farm and construction sectors, and along the degree of urbanization and some demographic factors. Cross-state differences in conditional earnings structures, however, turn out to be crucial, especially regarding the different degree of earnings stratification by caste in each state.
URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp2018-24&r=ltv
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: