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Table 4 Decomposition of changes in inequality measures from 2004/05 to 2011/12

From: Decomposition analysis of earnings inequality in rural India: 2004–2012

 

90-10

50-10

90-50

Gini

Value in 2004/05

1.857***

0.880***

0.977***

0.461***

(0.021)

(0.019)

(0.011)

(0.002)

Value in 2011/12

1.576***

0.791***

0.784***

0.396***

(0.017)

(0.011)

(0.015)

(0.003)

Total change

−0.282***

−0.089***

−0.192***

−0.066***

(0.027)

(0.022)

(0.019)

(0.004)

Aggregate decomposition of total change

 Structure effect

−0.322***

−0.094***

−0.228***

−0.072***

(0.027)

(0.024)

(0.019)

(0.004)

 Composition effect

0.041***

0.005

0.036***

0.007***

(0.015)

(0.008)

(0.013)

(0.002)

Detailed decomposition of the composition effect

 Education

0.041***

0.002

0.039***

0.011***

(0.007)

(0.004)

(0.007)

(0.001)

 Industry

−0.018***

0.002

−0.020***

−0.009***

(0.006)

(0.004)

(0.005)

(0.001)

 Experience

0.017***

0.000

0.017***

0.005***

(0.004)

(0.003)

(0.003)

(0.001)

 Male

−0.014***

−0.012***

−0.002

−0.004***

(0.003)

(0.003)

(0.002)

(0.001)

 Occupation

0.012***

0.002**

0.010***

0.003***

(0.004)

(0.001)

(0.003)

(0.001)

 States

0.001

0.009***

−0.009**

0.002*

(0.004)

(0.002)

(0.004)

(0.001)

 Married

0.002*

0.001

0.001

0.001***

(0.001)

(0.001)

(0.001)

(0.000)

 Caste

−0.002

−0.001

−0.001

−0.001***

(0.002)

(0.001)

(0.001)

(0.000)

 Muslim

0.002

0.001

0.001

0.000

(0.001)

(0.001)

(0.001)

(0.000)

Detailed decomposition of the structure effect

 Education

−0.140***

−0.032*

−0.108***

−0.016***

(0.027)

(0.019)

(0.022)

(0.004)

 Industry

−0.006

−0.061***

0.055**

0.009*

(0.029)

(0.017)

(0.024)

(0.005)

 Experience

−0.313

−0.185

−0.128

0.025

(0.215)

(0.174)

(0.153)

(0.033)

 Male

0.084

−0.051

0.135***

0.005

(0.054)

(0.050)

(0.027)

(0.006)

 Occupation

−0.088***

0.008

−0.096***

−0.012***

(0.028)

(0.013)

(0.026)

(0.004)

 States

−0.010

0.085

−0.094*

0.014

(0.072)

(0.052)

(0.05)

(0.014)

 Married

−0.103**

0.013

−0.116***

−0.009

(0.043)

(0.032)

(0.033)

(0.006)

 Caste

0.064

0.012

0.052

0.005

(0.055)

(0.031)

(0.047)

(0.011)

 Muslim

0.013*

0.004

0.010*

0.000

(0.007)

(0.004)

(0.006)

(0.001)

 Constanta

0.177

0.114

0.062

−0.094***

(0.256)

(0.208)

(0.178)

(0.035)

  1. Bootstrap standard errors shown in parentheses. Significant at *10 %, **5 %, and ***1 %
  2. aThe constant does not contain residual noise (defined as difference between actual and predicted statistics). This is because the RIF method decomposes the change over time between predicted statistics (see Eq. (6))