1Assistant Professor, Department of Economics, Govt. SAM Degree College, Budgam, J&K, India
2Head and Professor, Department of Economics, University of Kashmir, Srinagar, J&K, India
Online published on 24 August, 2018.
This paper attempts to estimate income inequality across the North-Western states of India: Punjab, Himachal Pradesh and Jammu & Kashmir have been selected to estimate the same. This study is based on 68th round of National Sample Survey Organisation consumption expenditure data of type 1 and type 2. The monthly per capita consumption expenditure (MPCE) is used as a proxy for monthly per capita income. As such, income inequality has been calculated by employing three different measures-Gini coefficient, generalised entropy measure and Atkinson's measure of inequality. The study finds highest value Gini coefficient and Theil's entropy for Himachal Pradesh as compared with Punjab and J&K. Although India has been both capitalist as well as socialist country, our inequality is increasing since reforms. India is second most unequal country globally, with millionaires controlling 54 percent of its wealth (Indian Economic Summit). That level of inequality should itself have been unacceptable, but then disparity has grown dramatically.
Income inequality, North-Western region, Consumption expenditure, Household income, Gini coefficient, Entropy index, Atkinson's index
