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Inequality in the Four Provinces of Pakistan

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  • HANS DE KRUIJK

    (Erasmus University. Rotterdam (the Netherlands).)

Abstract

The purpose of this paper is to analyse, compare and explain income inequalities in the four provinces of Pakistan on the basis of decomposition analysis. Overall income inequality is decomposed into various categories of inequalities in such a manner that the relative importance of each category can be quantified. Decomposition analysis searches for the main origins of income inequality not only within or between provinces, but also within and between urban and rural areas, labour income and non-labour income, etc. Identification of origins of inequality is important if policies aiming at reducing inequalities are considered. Clearly, different causes require different policies. A large 'decomposition tree' built for Pakistan recently [2] which provides information on the components of inequality is presented in the accompanying chart. The structure of inequalities in the four provinces is analysed on the basis of this 'decomposition tree'.

Suggested Citation

  • Hans De Kruijk, 1986. "Inequality in the Four Provinces of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 25(4), pages 685-706.
    • Handle: RePEc:pid:journl:v:25:y:1986:i:4:p:685-706
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    File URL: http://www.pide.org.pk/pdf/PDR/1986/Volume4/685-706.pdf
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    Cited by:

    1. Geoffrey A. Jehle, 1992. "An Islamic Perspective on Inequality in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 31(3), pages 295-316.
    2. Rashida Haq, 1999. "Income Inequality and Economic Welfare. A Decomposition Analysis for the Household Sector in Pakistan," PIDE-Working Papers 1999:170, Pakistan Institute of Development Economics.
    3. Muhammad Idrees & Eatzaz Ahmad, 2010. "Measurement and Decomposition of Consumption Inequality in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 15(2), pages 97-112, Jul-Dec.
    4. S. M. Naseem, 2012. "A Review Of Studies On Poverty In Pakistan: Origin, Evolution, Thematic Content And Future Directions," PIDE Books, Pakistan Institute of Development Economics, number 2012:1 edited by Rashid Amjad, December.

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