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Table 9 Decomposition of changes in inequality measures from 2004/05 to 2011/12

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

Using state poverty lines as deflators

 

90-10

50-10

90-50

Gini

Value in 2004/05

1.797***

0.864***

0.933***

0.451***

(0.015)

(0.010)

(0.012)

(0.002)

Value in 2011/12

1.515***

0.780***

0.735***

0.387***

(0.015)

(0.012)

(0.011)

(0.003)

Total change

−0.282***

−0.084***

−0.198***

−0.065***

(0.021)

(0.015)

(0.016)

(0.004)

Aggregate decomposition of total change

 Structure effect

−0.306***

−0.082***

−0.223***

−0.073***

(0.021)

(0.018)

(0.015)

(0.004)

 Composition effect

0.024*

−0.001

0.025**

0.009***

(0.014)

(0.009)

(0.012)

(0.003)

Detailed decomposition of the composition effect

 Education

0.036***

0.003

0.033***

0.012***

(0.007)

(0.004)

(0.006)

(0.001)

 Industry

−0.018**

0.002

−0.020***

−0.008***

(0.007)

(0.004)

(0.007)

(0.001)

 Experience

0.014***

−0.001

0.016***

0.005***

(0.003)

(0.003)

(0.003)

(0.001)

 Male

−0.021***

−0.016***

−0.006***

−0.004***

(0.004)

(0.003)

(0.001)

(0.001)

 Occupation

0.009***

0.001

0.009***

0.003***

(0.003)

(0.001)

(0.003)

(0.001)

 States

0.002

0.009***

−0.006

0.002

(0.015)

(0.003)

(0.014)

(0.001)

 Married

0.002**

0.002**

0.001

0.001***

(0.001)

(0.001)

(0.001)

(0.000)

 Caste

−0.003*

−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

−0.166***

−0.023

−0.143***

−0.016***

(0.033)

(0.030)

(0.046)

(0.004)

 Industry

−0.045*

−0.050***

0.005

0.008*

(0.027)

(0.016)

(0.023)

(0.004)

 Experience

−0.411*

−0.175

−0.236

0.021

(0.213)

(0.169)

(0.148)

(0.034)

 Male

−0.047

−0.115***

0.068***

−0.001

(0.044)

(0.042)

(0.026)

(0.006)

 Occupation

−0.144***

−0.003

−0.141***

−0.012***

(0.028)

(0.023)

(0.026)

(0.004)

 States

−0.164**

−0.146**

−0.018

0.013

(0.070)

(0.059)

(0.047)

(0.014)

 Married

−0.121***

0.037

−0.158***

−0.007

(0.043)

(0.032)

(0.031)

(0.006)

 Caste

0.063

0.014

0.049

0.002

(0.053)

(0.032)

(0.044)

(0.011)

 Muslim

0.013

0.004

0.009

0.000

(0.009)

(0.005)

(0.011)

(0.002)

 Constant

0.716***

0.374*

0.342**

−0.082**

(0.247)

(0.197)

(0.175)

(0.037)

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