Income Disparity among Urban and Rural Community in Sri Lanka

Abstract

Income disparity is considered as a global problem, with significant manifestations in the Sri Lankan context. This research investigates the income disparities between urban and rural populations in Sri Lanka. The objective is to investigate the degree of income inequality within and between sectors. The survey included 166 households. Since the study compared urban and rural communities, the same sample size was taken from both sectors. The study was carried out using multiple linear regression, with the Gini coefficient and Lorenz curve used to determine the degree of inequalities. According to the study's findings, the composite assessment of income disparities across sectors accounted for 0.25 Gini coefficient. According to the study, rural families' breadwinners should be financially supported. In order to reduce the degree of inequality, the government should take steps to improve rural infrastructure, schooling, and health care at a pace comparable to that of the urban sector.