The accumulation of the human capital stock plays a key role to explain the macroeconomic performance across regions. However, despite the strong theoretical support for this claim, empirical evidence has been not very convincing, probably because of the low quality of the data. This paper...

Using nationally representative household survey data, and district and state as two levels of aggregation, we examine role of individual and geographical factors in determining the level and the change in income inequality in India. We find that between-state income differences account for the...