(i) In India, half of the total observed change in national inequalitywas accounted
for by the widening urban–rural income gap, about 23% by rising rural
inequality, and about 13% each by an increase in the urban population share
and urban inequality.
(ii) In the PRC, 43% of the total observed increase in the national inequality can
be explained by rising rural inequality, 33% by widening in the urban–rural
income gap, and 24% by rising urban inequality, while the impact of urbanization
as measured by rising urban population share is negligible – in fact, it
helps reduce inequality, with the resulting reduction amounting to about 2%
of the total observed increase in national inequality.
(iii) In Indonesia, the most important driver of the observed increase in national
inequality was urbanization explaining 54% and rising urban inequality
explaining 42%, while rising rural inequality explained 6% and the impact
of the urban–rural income gap was negligible.