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Title:Public and private sector jobs, unreported income and consumption gap in India: Evidence from micro-data PDF Logo
Authors:Kar, Saibal
Roy, Poulomi
Saha, Sarani
Issue Date:2012
Series/Report no.:Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6404
Abstract:This paper tries to document the presence of unreported income among public sector employees in India. We investigate empirically the wage gap as well as consumption expenditure parity between public and private sector workers. It tests the hypothesis that despite a lower level of public sector income in some of the quantiles, if the level of durable goods consumption between the private and the public sector employees are similar, then it might be indicative of the presence of unreported income among the public sector workers. The 2004-05 survey of income and consumption by workers in both private and public sectors (NSSO) supports presence of unaccounted for income among public sector employees at the uppermost quantile. The empirical part is followed by a generalized theoretical formulation that comes up with a measure of the equilibrium level of the unreported income earned by the public sector employees.
Subjects:unreported income
consumption
indirect utility
quantile regression
India
JEL:C12
C31
D23
J21
Persistent Identifier of the first edition:urn:nbn:de:101:1-201206146892
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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