Income inequality in rural Pakistan-sources and decompositions
This paper analyses income inequalities in rural Pakistan. Using household survey data, we decompose income inequality according to its different sources. We calculate Gini coefficients and Theil indices both within and across provinces and districts. A partial correlation analysis extends our descriptive investigation to reveal the different impacts of the various income sources on overall income inequalities. The unique focus on rural areas and the more disaggregated (district level) approach permits more nuanced policy implications. We find that inequality between districts is higher than within districts. Non-farm and transfer income have the strongest impact on income inequality across districts both in economic and econometric terms. While the former source of income is inequality increasing, transfer income tends to reduce inequalities. Our results highlight in particular the need for factor mobility to facilitate transfer income.
|Date of creation:||Jan 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Adams, Richard H. Jr. & Alderman, Harold, 1992.
"Sources of income inequality in rural Pakistan : a decomposition analysis,"
Policy Research Working Paper Series
836, The World Bank.
- 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.
- Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
- 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.
- Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:39318. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.