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Income Inequality and Economic Welfare. A Decomposition Analysis for the Household Sector in Pakistan

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  • Rashida Haq

    (Pakistan Institute of Development Economics, Islamabad.)

Abstract

This study analyses inequality and welfare in Pakistan. The data used is based on "Household Income and Expenditure Surveys" conducted for the years 1979 to 1992-93. To access inequality and welfare across different time periods the data was adjusted for 1992-93 prices (Rs), for the homogeneity of the population adult equivalence scale was used because it is better for examining disparity in economic welfare in a society. For the measurement of welfare Sen's welfare index was applied which, takes into account both the size and the distribution of income. This welfare index also provides a decomposition of total welfare into its components.

Suggested Citation

  • 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.
  • Handle: RePEc:pid:wpaper:1999:170
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    File URL: http://pide.org.pk/pdf/rr/RR170.pdf
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    References listed on IDEAS

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    1. Simon Kuznets & Elizabeth Jenks, 1953. "Shares of Upper Income Groups in Income and Savings," NBER Books, National Bureau of Economic Research, Inc, number kuzn53-1, January.
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    3. Zafar Mahmood, 1984. "Income Inequality in Pakistan. An Analysis of Existing Evidence," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 23(2-3), pages 365-379.
    4. Simon Kuznets & Elizabeth Jenks, 1953. "Shares of Upper Income Groups in Savings," NBER Chapters,in: Shares of Upper Income Groups in Income and Savings, pages 171-218 National Bureau of Economic Research, Inc.
    5. A.R. Kemal, 1994. "Structural Adjustment, Employment, Income Distribution and Poverty," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(4), pages 901-914.
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    7. Kakwani, Nanak, 1980. "On a Class of Poverty Measures," Econometrica, Econometric Society, vol. 48(2), pages 437-446, March.
    8. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
    9. USMAN AFRIDI & AsGHAR QADIR & JAVED ZAKI, 1984. "Effects of Dual Sector Inflation Across Income Levels in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 23(2-3), pages 381-392.
    10. 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.
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    13. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    14. Kakwani, Nanak, 1987. "Inequality of income derived from survey data during the inflationary period," Economics Letters, Elsevier, vol. 23(4), pages 387-388.
    15. Sen, Amartya, 1974. "Informational bases of alternative welfare approaches : Aggregation and income distribution," Journal of Public Economics, Elsevier, vol. 3(4), pages 387-403, November.
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