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Table 7 Decomposition of changes in inequality measures from 2004/05 to 2011/12

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

All categorical variables converted to dummy variables, excluded states as controls

 

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)

(0.010)

(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

−0.382***

−0.092***

−0.290***

−0.082***

(0.028)

(0.024)

(0.019)

(0.005)

 Composition effect

0.101***

0.003

0.098***

0.017***

(0.015)

(0.007)

(0.013)

(0.002)

Detailed decomposition of the composition effect

 Education

0.046***

0.000

0.047***

0.010***

(0.006)

(0.003)

(0.005)

(0.001)

 Industry

0.026***

0.009**

0.017***

0.001

(0.006)

(0.004)

(0.005)

(0.001)

 Experience

0.039***

0.001

0.038***

0.009***

(0.005)

(0.003)

(0.004)

(0.001)

 Male

−0.023***

−0.011***

−0.011***

−0.006***

(0.004)

(0.003)

(0.002)

(0.001)

 Occupation

0.015***

0.002**

0.012***

0.003***

(0.005)

(0.001)

(0.004)

(0.001)

 Married

0.001

0.001

0.000

0.001***

(0.001)

(0.001)

(0.001)

(0.000)

 Caste

−0.002*

0.000

−0.002*

−0.001*

(0.001)

(0.000)

(0.001)

(0.000)

 Muslim

−0.001

0.001

−0.002*

−0.001***

(0.001)

(0.001)

(0.001)

(0.000)

Detailed decomposition of the structure effect

 Education

−0.133***

−0.040**

−0.093***

−0.016***

(0.030)

(0.017)

(0.026)

(0.003)

 Industry

−0.060**

−0.057***

−0.003

−0.002

(0.024)

(0.016)

(0.021)

(0.003)

 Experience

−0.391

−0.189

−0.202

0.022

(0.242)

(0.173)

(0.190)

(0.036)

 Male

0.066

−0.044

0.110***

0.007

(0.054)

(0.051)

(0.026)

(0.005)

 Occupation

−0.042

0.005

−0.047*

0.001

(0.028)

(0.011)

(0.026)

(0.004)

 Married

−0.160***

0.005

−0.165***

−0.023***

(0.045)

(0.032)

(0.035)

(0.006)

 Caste

0.127**

0.013

0.114**

0.006

(0.063)

(0.028)

(0.056)

(0.012)

 Muslim

0.016**

0.003

0.012**

0.002*

(0.007)

(0.004)

(0.006)

(0.001)

 Constant

0.196

0.211

−0.015

−0.079**

(0.287)

(0.203)

(0.223)

(0.038)

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