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Sources of Income Inequality in Rural Pakistan: A Decomposition Analysis

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  • Adams, Richard H, Jr
  • Alderman, Harold

Abstract

This paper uses three-year panel data to identify the sources of income inequality in rural Pakistan. The paper first decomposes total rural income among five sources: agricultural, livestock, rental, nonfarm, and transfer. This decomposition shows that agricultural income makes the largest contribution to total rural inequality. The study then decomposes the sources of agricultural income inequality in order to understand how much of agricultural inequality is due to unequal landownership. The results show that returns to labor and crop profit make as large a contribution to agricultural income inequality as unequal landownership. Copyright 1992 by Blackwell Publishing Ltd

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Bibliographic Info

Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 54 (1992)
Issue (Month): 4 (November)
Pages: 591-608

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Handle: RePEc:bla:obuest:v:54:y:1992:i:4:p:591-608

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References

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  1. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-56, February.
  2. Quan, Nguyen T., 1989. "Concentration of income and land holdings : Prediction by latent variables model and partial least squares," Journal of Development Economics, Elsevier, vol. 31(1), pages 55-76, July.
  3. Glewwe, Paul, 1986. "The distribution of income in Sri Lanka in 1969-1970 and 1980-1981 : A decomposition analysis," Journal of Development Economics, Elsevier, vol. 24(2), pages 255-274, December.
  4. Pyatt, Graham & Chen, Chau-nan & Fei, John, 1980. "The Distribution of Income by Factor Components," The Quarterly Journal of Economics, MIT Press, vol. 95(3), pages 451-73, November.
  5. Hans De Kruijk, 1987. "Sources of Income Inequality in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 26(4), pages 659-672.
  6. Fields, Gary S, 1979. "Income Inequality in Urban Colombia: A Decomposition Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(3), pages 327-41, September.
  7. von Braun, Joachim & Pandya-Lorch, Rajul, 1991. "Income sources of malnourished people in rural areas: Microlevel information and policy implications," IFPRI working papers 5, International Food Policy Research Institute (IFPRI).
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Citations

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Cited by:
  1. Taylor, J. Edward & Mora, Jorge & Adams, Richard H., Jr. & Lopez-Feldman, Alejandro, 2005. "Remittances, Inequality and Poverty: Evidence from Rural Mexico," Working Papers 60287, University of California, Davis, Department of Agricultural and Resource Economics.
  2. Taylor, J. Edward & Mora, Jorge, 2006. "Does migration reshape expenditures in rural households? Evidence from Mexico," Policy Research Working Paper Series 3842, The World Bank.
  3. Richard H. Adams, JR., 1993. "Non-farm Income and Inequality in Rural Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 1187-1198.
  4. Barrett, Christopher B. & Reardon, Thomas, 2000. "Asset, Activity, And Income Diversification Among African Agriculturalists: Some Practical Issues," Working Papers 14734, Cornell University, Department of Applied Economics and Management.
  5. Shams, Khadija, 2012. "Income inequality in rural Pakistan-sources and decompositions," MPRA Paper 39318, University Library of Munich, Germany.
  6. Estudillo, Jonna P. & Quisumbing, Agnes R. & Otsuka, Keijiro, 2001. "Income distribution in rice-growing villages during the post-Green Revolution periods: the Philippine case, 1985 and 1998," Agricultural Economics, Blackwell, vol. 25(1), pages 71-84, June.
  7. Hari Ram Lohano, 2009. "Poverty Dynamics in Rural Sindh, Pakistan," Working Papers id:2334, eSocialSciences.
  8. Alarcon, Diana & McKinley, Terry, 1997. "The rising contribution of labor income to inequality in Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 8(2), pages 201-212.

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