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Non-food expenditures and consumption inequality in India
This paper contributes to the ongoing debate about economic inequality in India during the post-reform period. It analyses consumption inequality through the hitherto neglected lens of non-food expenditure. Using household level consumption expenditure data from the quinquennial thick rounds of the...
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| Format: | Article |
| Language: | English |
| Published: |
2015
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| Summary: | This paper contributes to the ongoing debate about economic inequality in India during the post-reform period. It analyses consumption inequality through the hitherto neglected lens of non-food expenditure. Using household level consumption expenditure data from the quinquennial thick rounds of the National Sample Survey, the paper shows that inequality within food and non-food groups has declined, even as overall expenditure inequality has increased over time. The analysis suggests that the rise in overall expenditure inequality is due to the increased weight in the household budget of non-food spending, which tends to be more unequal than food spending. The paper also shows that inequality is very different across broad non-food items. Durables, education, healthcare, and consumer services show the most rapid increases in real expenditure, and also display the highest levels of inequality. Finally, the paper offers some possible mechanisms for this phenomenon and suggests policy measures to deal with this form of inequality. |
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| Physical Description: | 43 - 53 |