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Table 6 Decomposition of changes in inequality measures from 2004/05 to 2011/12

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

With college and beyond as omitted (all else the same)

 

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***

(0.026)

(0.021)

(0.018)

(0.004)

Aggregate decomposition of total change

 Structure effect

−0.322***

−0.094***

−0.228***

−0.072***

(0.027)

(0.024)

(0.018)

(0.003)

 Composition effect

0.041**

0.005

0.036***

0.007***

(0.016)

(0.009)

(0.014)

(0.003)

Detailed decomposition of the composition effect

 Education

0.041***

0.002

0.039***

0.011***

(0.008)

(0.004)

(0.007)

(0.001)

 Industry

−0.018**

0.002

−0.020***

−0.009***

(0.008)

(0.005)

(0.008)

(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)

(0.004)

(0.001)

 States

0.001

0.009***

−0.009

0.002**

(0.015)

(0.002)

(0.014)

(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***

(0.001)

(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

0.497***

0.086

0.411**

0.098***

(0.192)

(0.055)

(0.185)

(0.035)

 Industry

−0.006

−0.061***

0.055**

0.009*

(0.028)

(0.017)

(0.024)

(0.005)

 Experience

−0.313

−0.185

−0.128

0.025

(0.223)

(0.173)

(0.156)

(0.033)

 Male

0.084

−0.051

0.135***

0.005

(0.053)

(0.050)

(0.028)

(0.006)

 Occupation

−0.088***

0.008

−0.096***

−0.012***

(0.028)

(0.023)

(0.026)

(0.004)

 States

−0.01

0.085

−0.094**

0.014

(0.069)

(0.052)

(0.048)

(0.013)

 Married

−0.103**

0.013

−0.116***

−0.009

(0.043)

(0.032)

(0.032)

(0.006)

 Caste

0.064

0.012

0.052

0.005

(0.056)

(0.030)

(0.047)

(0.011)

 Muslim

0.013

0.004

0.010

0.000

(0.01)

(0.005)

(0.011)

(0.001)

 Constant

−0.461

−0.004

−0.456*

−0.208***

(0.307)

(0.206)

(0.235)

(0.052)

  1. Bootstrap standard errors shown in parentheses. Significant at *10 %, **5 %, and ***1 %