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Rural–Urban Disparities in India in the Time of Growth

Sudipta Ghosh, Viktoria Hnatkvska and Amartya Lahiri
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Amartya Lahiri: -

India Policy Forum, 2020, vol. 16, issue 1, 219-265

Abstract: The period since the 1990s has seen an aggregate growth takeoff in India during which the rural agricultural sector has gradually ceded space in both employment and output share to non-agricultural sectors. How have agriculture-dependent rural workers and households fared during this episode relative to their urban counterparts? Using household-level survey data, we find that rural–urban education gaps have declined significantly between 1983 and 2012. Moreover, occupation choices in the two sectors have become more aligned with an expansion of non-farm occupations in rural India. Consumption gaps between rural and urban households also declined between 1983 and 2005 for the bottom 45th percentile of the distribution. The period since 2005 has, however, witnessed a rise in consumption gaps. Using state-leveldata, we show that per capita income levels and growth rates are positive correlates of rural–urban consumption gaps, while the education gap is a negative correlate.

Keywords: Rural–Urban Disparity; Consumption Gaps; Education (search for similar items in EconPapers)
JEL-codes: E2 O1 R2 (search for similar items in EconPapers)
Date: 2020
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