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Indian Journal of Economics and Development
Year : 2022, Volume : 18, Issue : 2
First page : ( 350) Last page : ( 358)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.35716/IJED/22004

Measurement and Decomposition of Income Inequality among Agricultural Households in Andhra Pradesh

Areef Mulla1,*, Radha Yanamadala2

1Research Scholar, Department of Agricultural Economics, College of Agriculture, Acharya N.G. Ranga Agricultural University, Bapatla-522101 (Andhra Pradesh)

2Director (P&M Cell) and Head, Department of Agricultural Economics, College of Agriculture, Acharya N.G. Ranga Agricultural University, Bapatla-522101 (Andhra Pradesh)

*Corresponding author's email: areefmulla009@gmail.com

Online Published on 06 February, 2023.

Abstract

This study attempted to measure and decompose income inequality with the hypothesis that livestock is a major income source, and the value of farm assets is a major factor in increasing income inequality among agricultural households. The results revealed that livestock and agricultural wages had a larger equalizing effect across the income sources, and cultivation and off-farm had an un-equalizing effect on income distribution. The findings suggested that livestock and work opportunities in off-farm as an agricultural labourer can serve as potential sectors for marginal and small farmers to enhance income and minimize income variability across landholding categories.

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Keywords

Gini ratio, Income inequality, Inequality decomposition, RBID, Theil index.

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