ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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The Fallacy of Trickle-down Economics: Whom Does ‘Wealth Creation’ Benefit?

While the theory of “trickle down” of wealth to the poor is often invoked to support the government’s neo-liberal policies, such as tax cuts and other financial incentives for the private sector that benefit the rich, in reality, such policies have not been successful in bridging economic inequalities.

Understanding India’s Gilded Age

The Billionaire Raj: A Journey through India’s New Gilded Age by James Crabtree, Noida: Harper Collins, 2018; pp 358 + xxv, ` 799.

Three Decades of HDI

Tackling gender and income disparities will boost India’s human development record.

Beyond Headline GDP Growth

Income and consumption growth rates vary for different income groups. Data shows that beyond the headline gross domestic product growth rate, there is a significant heterogeneity in growth rates depending on which part of the income distribution one is located in. The article highlights the...

Small Farmers and Organised Retail Chains in India

This study compares farmers selling vegetables to Mother Dairy, an organised retail chain, with those selling to the local mandi in Haryana to find out the drivers and constraints determining their participation in these two types of marketing chains, particularly for the small farmers. The findings suggest the significance of farm size in determining farmers’ participation in organised retail chains. Using Heckman selection–correction model, the study found that though the income of participating farmers increases, the increase depends on farm size, while the Ginni coefficient shows that the inequality in income distribution is more among the participants than the non-participating farmers.

Changing Wealth Inequalities in Child Nutrition in Indian States

How have wealth inequalities in child nutrition changed in the major states of India between the last two rounds of the National Family Health Survey? The temporal change in the likelihood of child stunting in the poorest quintile of households vis-à-vis the richer quintiles is examined. Alternative measures of wealth inequality in child nutrition, based on the ranking of the households’ wealth scores (namely the concentration index and the extended concentration index), are also used to see how the magnitudes have changed. The poorly performing states have not only retained the last ranks in terms of average stunting, but have also faltered in the reduction of stunting during the decade under study. In three of these states, the improvement in child stunting has disfavoured the poor by all measures. Comparing the concentration index and the extended concentration index for the two rounds, it is found that inequality in stunting has increased in all the states excluding Uttarakhand. This calls for immediate policy attention, since children from the poorest households in the backward states seem to suffer from the dual burden of the state effect and the class effect.

If You Want Change, Look to the Youth: Lessons for Chile's Struggle Against Inequality

Thirty years after the dictatorship of Augusto Pinochet, Chile is in the middle of an economic and political crisis, the roots of which can be found in the neo-liberal model initiated by the Pinochet regime.

‘Two Class’ Distribution of Income in India

Results from the 2012–13 income tax data reveal that Indian incomes, particularly high salaries and wealth-related income, are statistically distributed into two distinct classes. The bulk of the reported income distribution can be explained by an exponential distribution, while a small fraction at the top follows a more unequal power law (Pareto) distribution. This distinction has important implications for inequality, and provides a point of comparison with similar statistical regularities observed in rich countries.

Explaining Cross-Country Variation in Income Inequality

Most earlier studies exploring the cross-ountry variation in the degree of income inequality (measured by Gini ratio) are valuable but for the inappropriate data on inequality comprising estimates of Gini from incomparable data sets such as national and sub-ational surveys, per person and per household income distributions, and income and expenditure distributions. This paper explores the cross-ountry variation in income inequality based on relatively more comparable data and suggests that public policy aimed at reducing inequality and freedom may be the key variables that explain the variation in the Gini across countries. Prospects for launching national policy initiatives to reduce inequalities are rather dim since globalisation could be conveniently used to rationalise a relatively high level of income inequality.
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