This paper examines the sources of inequality of income opportunity in the Himalayan state of Uttarakhand. It is based on data collected from a survey over three clusters in disparate geographical regions of the state. The econometric analyses show that the rural sector lags in household income opportunities not just due to lesser access to educational opportunities, but also due to non-educational factors, and because the same education provides unequal incomes between the sectors. The analysis also reveals other sources of inequality such as the age and gender composition of the households. Moreover the implications of such factors vary between hilly and plain areas. The study highlights the need to address the quality of education and to design policies specific to regional demands.
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