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Sources of Income Inequality in Pakistan



    (Erasmus University Rotterdam, the Netherlands.)


In a paper presented at the 1985 Conference of this Society [Kruijk and Leeuwen (1985)] we described some structural changes in poverty and income inequality in Pakistan during the 1970s. All inequality measures and poverty indicators pointed to the conclusion that poverty has declined while at the same time inequality has increased. Htlwever, the paper did not go deep enough into the reasons why inequality has increased. It did appear that neither the urban/rural distinction nor interprovincial income differences are important determinants of overall income inequality in Pakistan 1 so that these elements cannot contribute much to explaining changes in inequality. In his comments, Kernal, (1986) suggests to extend the applied decomposition technique by decomposing income also into its sources. This is precisely the purpose of the present paper.

Suggested Citation

  • 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.
  • Handle: RePEc:pid:journl:v:26:y:1987:i:4:p:659-672

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    References listed on IDEAS

    1. Nadeem A. Burney, 1986. "Sources of Pakistan's Economic Growth," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 25(4), pages 573-589.
    2. Mohammad, Irfan & Amjad, Rashid, 1994. "Poverty in rural Pakistan," MPRA Paper 38335, University Library of Munich, Germany.
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    Cited by:

    1. 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.
    2. 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.
    3. Rizwana Siddiqui & A. R. Kemal, 2006. "Remittances, Trade Liberalisation, and Poverty in Pakistan: The Role of Excluded Variables in Poverty Change Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(3), pages 383-415.
    4. G. M. Arif & Hina Nazli & Rashida Haq, 2000. "Rural Non-agriculture Employment and Poverty in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 1089-1110.

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