Revisiting Between-group Inequality Measurement : An Application to the Dynamics of Caste Inequality in Two Indian villages

Standard approaches to decomposing how much group differences contribute to inequality rarely show significant between-group inequality, and are of limited use in comparing populations with different numbers of groups. This study applies an adaptat...

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Bibliographic Details
Main Authors: Lanjouw, Peter, Rao, Vijayendra
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100614091204
http://hdl.handle.net/10986/3822
Description
Summary:Standard approaches to decomposing how much group differences contribute to inequality rarely show significant between-group inequality, and are of limited use in comparing populations with different numbers of groups. This study applies an adaptation to the standard approach that remedies these problems to longitudinal household data from two Indian villages -- Palanpur in the north, and Sugao in the west. The authors find that in Palanpur the largest scheduled caste group failed to share in the gradual rise in village prosperity. This would not have emerged from standard decomposition analysis. However, in Sugao the alternative procedure did not yield any additional insights because income gains applied relatively evenly across castes.