Literacy acts as a vital catalyst to promote human development, foster social progress, and accelerate economic growth. The prevalence of any form of disparity in literacy whether that be based on gender or caste or be region-specific is not compatible with a democratic country’s overarching objectives of socio-economic development. However, despite considerable progress in literacy in recent years, there remain disparities with a bearing on development dividend. This article seeks to investigate the extent of gender disparity and rural–urban divide in literacy in Punjab using district-level data for 1991, 2001, and 2011. Sopher’s Disparity Index and Rural–Urban Differentials Index approaches have been employed to read literacy differentials. Further, the study tried to assess the relationship between literacy disparities and selected development indicators. Besides generating evidence on widespread gender disparity and rural–urban divide in literacy across districts of Punjab, the study revealed such differentials have a systematic adverse bearing on the selected set of development indicators. It is recommended that focused policy interventions should be carried out to improve the literacy levels of females, particularly those belonging to the scheduled caste (SC) community, as well as rural dwellers in districts of Punjab that are tormented by pronounced literacy disparities.
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