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Agricultural resource and income inequality in Northern Rajasthan

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Mada Melkamu and N.K Singh

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Indian Journal of Economics and Development
Year : 2016, Volume : 12, Issue : 2
First page : ( 265) Last page : ( 272)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2016.00135.9

Agricultural Resource and Income Inequality in Northern Rajasthan

Melkamu Mada*, Singh N.K
Department of Agricultural Economics, College of Agriculture, S.K Rajasthan Agricultural University, Bikaner

*Corresponding author’s email: melkamumada2002@gmail.com

JEL Codes: D31, D63, I32, Q15

Online published on 13 June, 2016.

Abstract
The present study attempts to analyze resource and income inequality in Northern Rajasthan. The study used primary data from 300 households following multistage random sampling process in the study area. To address resource and income inequality, the study used Lorenz curve, Gini coefficients and dividing the sampled households into fifths (quintiles) approach. The study found Gini-coefficient value (0.499) for agricultural land, (0.476) for livestock holding (0.67) for irrigated land and (0.425) for income distribution, that indicates existence of high inequality among sampled households in Northern Rajasthan. Quintiles division analysis result also agrees with the Lorenz curve and Gini coefficients result. The uppermost 20 percent land holding is 2.5 times more than the assumed equal distribution rate, more than 102 times more than lowest 20 quintiles and more than six times the lowest 40 percent quintiles. The uppermost 20 percent quintiles livestock holding is more than 86 times higher than the lowest 20 percent quintiles and more than 2 times the expected equal distribution amount. Surprisingly, uppermost 20 percent quintiles irrigated land holding is almost 8 times higher than the lowest 60 percent quintiles and more than 3 times greater than the assumed equal distribution rate. All the data result indicates irrigated land is controlled by few people in Northern Rajasthan. The upper 20 percent quintiles income share is more than two times higher than equal distribution and more than ten times higher than lowest 20 percent share. However, as compared to other inequality indicators, there is lower degree of income inequality. The Lorenz curve position from equal distribution coincide with Gini coefficient results and quintiles division analysis results.

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