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Economic Inequality in the ‘Democratic’ Nepal: Dimensions and Implications
Unformatted Document Text:  19 caste/ethnic and spatial lines would help assess a range of possible scenarios. This section takes on the vertical notion of inequality using the major caste/ethnic and spatial demarcations to identify inequality. Gini coefficients reported in Table 7 show, for example, that within group inequality is highly variable across different caste and ethnic groups. This form of inequality was consistently the highest among the Janjatis, with the inequality of unadjusted household income and especially household wealth recording the highest. This is followed by inequality within the HCH’s, Newars, and others. The LCH’s and Muslims in particular manifest the lowest degrees of inequality. While there are some variations across different economic resources, inequality tends to largely follow the average resources reported in Table 3 understandably because larger estimates tend to include larger degrees of dispersion. (Insert Table 7 here) Over the period of eight years, the within group inequality somewhat declined among the HCH’s, where as it consistently declined among the Janjatis and consistently increased among the Others. 18 Within group inequality slightly increased among the MCH’s and LCH’s, Newars, and Muslims. Inequality of household wealth, however, appears to operate differently, as it consistently declined among the HCH’s, LCH’s, Newars, Janjatis, and Muslims. The spatial dimension of vertical inequality is also manifest, as some areas tend to exhibit high degrees of inequality within themselves. Given the often inflated market prices and variable opportunities provided by the market, urban areas tend to maintain higher degrees of inequality as the Gini coefficients reported in Table 8 suggest. While the inequality of household expenditures remained almost the same in urban areas, the inequality of adjusted and especially unadjusted household incomes significantly increased during the period. Rural areas too experienced greater degrees of inequality of expenditures and incomes by the end of the period.

Authors: Wagle, Udaya.
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19
caste/ethnic and spatial lines would help assess a range of possible scenarios.
This section takes on the vertical notion of inequality using the major caste/ethnic and spatial
demarcations to identify inequality. Gini coefficients reported in Table 7 show, for example, that
within group inequality is highly variable across different caste and ethnic groups. This form of
inequality was consistently the highest among the Janjatis, with the inequality of unadjusted
household income and especially household wealth recording the highest. This is followed by
inequality within the HCH’s, Newars, and others. The LCH’s and Muslims in particular manifest
the lowest degrees of inequality. While there are some variations across different economic
resources, inequality tends to largely follow the average resources reported in Table 3
understandably because larger estimates tend to include larger degrees of dispersion.
(Insert Table 7 here)
Over the period of eight years, the within group inequality somewhat declined among the
HCH’s, where as it consistently declined among the Janjatis and consistently increased among
the Others.
18
Within group inequality slightly increased among the MCH’s and LCH’s, Newars,
and Muslims. Inequality of household wealth, however, appears to operate differently, as it
consistently declined among the HCH’s, LCH’s, Newars, Janjatis, and Muslims.
The spatial dimension of vertical inequality is also manifest, as some areas tend to exhibit high
degrees of inequality within themselves. Given the often inflated market prices and variable
opportunities provided by the market, urban areas tend to maintain higher degrees of inequality
as the Gini coefficients reported in Table 8 suggest. While the inequality of household
expenditures remained almost the same in urban areas, the inequality of adjusted and especially
unadjusted household incomes significantly increased during the period. Rural areas too
experienced greater degrees of inequality of expenditures and incomes by the end of the period.


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