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Sources of Income Inequality in Rural Pakistan: A Decomposition Analysis

Author

Listed:
  • 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

Suggested Citation

  • Adams, Richard H, Jr & Alderman, Harold, 1992. "Sources of Income Inequality in Rural Pakistan: A Decomposition Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(4), pages 591-608, November.
    • Handle: RePEc:bla:obuest:v:54:y:1992:i:4:p:591-608
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    1. Taylor, J. Edward & Mora, Jorge & Adams, Richard H., Jr. & Lopez-Feldman, Alejandro, "undated". "Remittances, Inequality and Poverty: Evidence from Rural Mexico," Working Papers 60287, University of California, Davis, Department of Agricultural and Resource Economics.
    2. Reardon, Thomas, 1997. "Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa," World Development, Elsevier, vol. 25(5), pages 735-747, May.
    3. Bogale, A. & Hagedorn, K. & Balu, G., 2001. "The Dimensions of Poverty and Inequalty: A Focus on Rural Households in Ethopia," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 37.
    4. Khadija Shams & Alexander Kadow, 2020. "Income inequality, remittances and economic wellbeing in rural Pakistan: linkages and empirical evidence," Asia-Pacific Journal of Regional Science, Springer, vol. 4(2), pages 499-519, June.
    5. Xu, Yecheng & Zhang, Yaoqi & Chen, Jiquan & John, Ranjeet, 2019. "Livestock dynamics under changing economy and climate in Mongolia," Land Use Policy, Elsevier, vol. 88(C).
    6. Amara Amjad Hashmi & Maqbool H. Sial & Maaida Hussain Hashmi, 2008. "Trends and Determinants of Rural Poverty: A Logistic Regression Analysis of Selected Districts of Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 909-923.
    7. 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.
    8. Shams, Khadija, 2012. "Income inequality in rural Pakistan-sources and decompositions," MPRA Paper 39318, University Library of Munich, Germany.
    9. Zagdbazar, Manlaibaatar, 2025. "Inequality Reduction in Mongolia: A Dynamic Income Source Analysis," MPRA Paper 125662, University Library of Munich, Germany.
    10. Zhao, Sudan & Jiang, Yongmu, 2022. "Heterogeneous effects of rural–urban migration and migrant earnings on land efficiency: Empirical evidence from China," Land Use Policy, Elsevier, vol. 115(C).
    11. 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.
    12. 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.
    13. Asma Kanwal & Nwakego Eyisi, 2023. "Income Inequality and Frontend Innovation: Evidence from Frontier Markets," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 255-286, March.
    14. Zsóka Kóczán & Franz Loyola, 2021. "How do migration and remittances affect inequality? A case study of Mexico," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(2), pages 360-381, March.
    15. Hari Ram Lohano, 2009. "Poverty Dynamics in Rural Sindh, Pakistan," Working Papers id:2334, eSocialSciences.
    16. 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.
    17. Puja Guha, 2014. "Economics of Migration and Remittances: A Review Article," Working Papers id:5618, eSocialSciences.
    18. Felix Naschold, 2009. "Microeconomic Determinants of Income Inequality in Rural Pakistan," Journal of Development Studies, Taylor & Francis Journals, vol. 45(5), pages 746-768.
    19. Alderman, Harold & Garcia, Marito, 1993. "Poverty, Household Food Security, and Nutrition in Rural Pakistan," Research Reports 37963, CGIAR, International Food Policy Research Institute (IFPRI).
    20. Fambon, Samuel, 2009. "Inequality in the Distribution of Household Expenditure in Cameroon," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 43, Verein für Socialpolitik, Research Committee Development Economics.
    21. Molden, David & Oweis, T. Y. & Pasquale, S. & Kijne, Jacob W. & Hanjra, M. A. & Bindraban, P. S. & Bouman, Bas A. M. & Cook, S. & Erenstein, O. & Farahani, H. & Hachum, A. & Hoogeveen, J. & Mahoo, Hen, 2007. "Pathways for increasing agricultural water productivity," Book Chapters,, International Water Management Institute.
    22. 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.
    23. Amar Iqbal Anwar & Mazhar Mughal, 2012. "Remittances, inequality and poverty in Pakistan: macro and microeconomic Evidence [Centre d'Analyse Théorique et de Traitement des données économiques REMITTANCES, INEQUALITY AND POVERTY IN PAKISTAN: MACRO AND MICROECONOMIC EVIDENCE Mazhar MUGHAL]," Working papers of CATT hal-01885153, HAL.
    24. Mehtabul Azam, 2016. "Income Inequality in India 2004-2012: Role of Alternative Income sources," Economics Bulletin, AccessEcon, vol. 36(2), pages 1160-1169.

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