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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))