Income, Consumption, and Assets in India

Reeve Vanneman, University of Maryland
Cecily Darden Adams, University of Maryland
Amaresh Dubey, North-Eastern Hill University

Using original data from a newly collected nationwide survey for over 40,000 households in India, we examine the use of income, consumption, and asset data for measuring inequality. While consumption and asset measures are often included in developing country surveys, these data are unusual in including estimates of household income as well. We describe the construction of these three measures and analyze their levels and variation across households and 23 Indian states. We assess the internal consistency of each measure and report their co-variation across India and each of the 23 states. We then analyze their social and regional determinants and their consequences for two outcomes: children’s schooling and health.