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Personal Earnings Inequality in Pakistan: Findings from the HIES 1993-94

Author

Listed:
  • Zafar Mueen Nasir

    (Pakistan Institute of Development Economics, Islamabad.)

  • Riaz Mahmood

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

The earnings of workers play important role in the well-beings of households’ as they account for the largest proportion of total household income. If earnings of workers are distributed unevenly, they contribute significantly to the inequality in the household earnings. It may not be a cause of serious concern if income inequality grows and income of the workers also grows throughout the population and the position of the bottom segment improves. It is however serious when gap between rich and poor increases by worsening the position of poor. To reduce the household income inequality it is therefore important to focus on the distribution of personal earnings and frame a policy. There are many cause of inequality in personal earnings. As workers income rises at varying rates, it may reflect the decision of household of their investment in human capital and decisions to acquire skills. The factors like education, occupation, gender, regional location, sector of employment, and non-market forces such as discrimination may also play a significant role in the distribution of earnings.

Suggested Citation

  • Zafar Mueen Nasir & Riaz Mahmood, 1998. "Personal Earnings Inequality in Pakistan: Findings from the HIES 1993-94," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 781-792.
    • Handle: RePEc:pid:journl:v:37:y:1998:i:4:p:781-792
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    File URL: http://www.pide.org.pk/pdf/PDR/1998/Volume4/781-792.pdf
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    References listed on IDEAS

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    1. Nadeem Ul Haque, 1977. "An Economic Analysis of Personal Earnings in Rawalpindi City," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 16(4), pages 353-382.
    2. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, May.
    3. Khalil A. Hamdani, 1977. "Education and the Income Differential. An Estimation for Rawalpindi City," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 16(2), pages 144-164.
    4. Dooley, Martin D & Gottschalk, Peter, 1984. "Earnings Inequality among Males in the United States: Trends and the Effect of Labor Force Growth," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 59-89, February.
    5. Tayyeb Shabbir, 1994. "Mincerian Earnings Function for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(1), pages 1-18.
    6. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Muhammad Irfan, 2010. "A Review of the Labour Market Research at PIDE 1957-2009," PIDE Books, Pakistan Institute of Development Economics, number 2010:1 edited by Rashid Amjad & Aurangzeb A. Hashmi.

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