Public and private sector jobs, unreported income and consumption gap in India: Evidence from micro-data

Sarani Saha, Poulomi Roy () and Saibal Kar ()

The North American Journal of Economics and Finance, 2014, vol. 29, issue C, 285-300

Abstract: This paper documents the wage and consumption gap between private and public sector employees in India. We empirically investigate the wage gap as well as difference in consumption expenditure using household survey from the 2004-05 National Sample Survey of India. Our results show that despite a lower level of public sector income in some of the income quantiles, the consumption of durable goods is not different between these two groups, statistically. After checking for competing explanations, we conclude that the absence of statistically significant consumption gap could be an outcome of ‘unreported’ income earned by public sector workers in India.

Keywords: Unreported income; Consumption; Durable goods; Quantile regression; India (search for similar items in EconPapers)
JEL-codes: C12 C31 D23 J21 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Public and Private Sector Jobs, Unreported Income and Consumption Gap in India: Evidence from Micro-Data (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:29:y:2014:i:c:p:285-300

DOI: 10.1016/j.najef.2014.07.002

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