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Sources of Income Inequality in Rural Pakistan: A Decomposition Analysis

  • Adams, Richard H, Jr
  • Alderman, Harold

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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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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  1. 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.
  2. 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.
  3. 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.
  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. 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.
  6. 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).
  7. 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.
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