Inequality in consumption expenditure at household level in Uttar Pradesh: Regression Based Inequality Decomposition (RBID)

The present study focuses on the Regression based inequality decomposition at household level consumption expenditure in Uttar Pradesh using NSSO 62nd, 63rd and 64th rounds of unit level data. An attempt has been made to measure the inequality decomposition based on regression analysis developed by Morduch and Sicular (2002), Fields (2003) and Fiorio and Jenkins (2007). The variables used for the decomposition based on regression for AMPCE are age of the head of households, gender of the head of households, marital status of the head of households, education level of the head of households, household size, household type, religion, social group, land possession, dwelling unit, type of structure, primary source of energy for cooking, primary source of energy for lighting and sector (Rural and Urban). Regression result shows that coefficient of education of the head of households followed by household size and type of household, social group and energy for light significant. Education level of the head of household is contributing as main factor for inequality followed that size of household and region (rural or urban). Regression based inequality decomposition reveals that in society there is urgent need for the enhancement in government expenditure in Uttar Pradesh on education especially in technical and higher level of education.