Estimating the trends in inequality in Bhutan using the recent Living Standard Survey 2017: The importance of adjusting expenditure for household composition

Abstract

AbstractThis article evaluates and discusses inequality in Bhutan for the period of 2007–2012 and 2012–2017. Using the OECD‐modified equivalence scale, the article finds that the inequality in Bhutan fell by around 6% in the period of 2007–2012 but rose by 1% during 2012–2017. The urban inequality experienced consecutive fall by 2% in the period of 2007–2012 and almost 4% in the period of 2012–2017. The rural counterpart experienced fall by 0.1% in the period of 2007–2012 but rose by 2% in the period of 2012–2017. The richest 20% who received almost nine times the income of the poorest 20% in 2007 fell to eight times in 2012 and then again rose to a little more than eight times in 2017.