Ineqality in West Bengal (2004-05 to 2022-23): A Decomposition Analysis Across Sectors, Regions, and Social Groups

This paper analyses trends in consumption inequality in West Bengal across rural and urban sectors, five regions, and major social groups during 2004–05 to 2011–12 and 2011–12 to 2022–23. Using the Theil index and decomposition analysis, the study highlights significant structural changes in inequality. Findings reveal a steady decline in rural inequality and a mixed pattern in urban areas. Decomposition results show that within-group inequality dominates, though between-group disparities have narrowed over time. Regional and social group analysis indicates persistent heterogeneity, despite overall improvements. Policy implications emphasize targeted interventions for reducing social and spatial inequalities.