Paper long abstract:

This paper links relative deprivation with theory of relative utility to study the welfare implications of inequality among social groups. In one dimension, our findings prove evidence of the success of urbanization, development of west area and education expansion in reducing income inequality. In the other dimension, we conclude that policies targeting reducing deprivation among some social groups, such as rural residence, the adults and the elderly, the poor class, lower educated group and those living in the West, are effective in addressing overall inequality.