Table 13.6 shows that the value of the inequality elasticity varies across the four
drivers and countries. For India, reducing the urban–rural income gap potentially
has the largest marginal impact on national inequality, followed by reducing rural
and urban inequalities, while urbanization increases national inequality. In the case
of the PRC, reducing the urban–rural income gap has the largest marginal impact
on national inequality, followed by reducing rural inequality, urban inequality, and
urbanization. In Indonesia, reducing urban inequality and the urban–rural income
gap have the same and largestmarginal impact, followed by rural inequality, while
urbanization increases national inequality. Finally, in the case of the Philippines,
reducing urban inequality and the urban–rural income gap have similar and the
largest impact on national inequality, followed by reducing rural inequality, while
urbanization increases national inequality, although the impact is small.