Sources of income inequality in rural Pakistan : a decomposition analysis
Using panel data from a three-year study of 727 households, the authors identify the sources of income inequality in rural Pakistan. First, theydecompose total rural income among five sources: agricultural, livestock, rental, nonfarm, and transfer income. This decomposition shows that agricultural income contributes most to inequality in total rural income. Next, they decompose the sources of inequality in agricultural income. This leads to the surprising finding that inequitable ownership of land is not the main source of inequality in agricultural income. Income from returns to labor and crop profits contribute most to this area of inequality. One way to reduce rural income inequality might be to find more ways to narrow the disparities between abilities, perhaps by teaching more managerial and technical skills to agriculturists. According to the authors, policy makers concerned about inequality in rural Pakistan would also be well advised to pay more attention to livestock. Income from livestock apparently decreases the inequalities in income.
|Date of creation:||31 Jan 1992|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
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.:
- John C. H. Fei & Gustav Ranis & Shirley W. Y. Kuo, 1978. "Growth and the Family Distribution of Income by Factor Components," The Quarterly Journal of Economics, Oxford University Press, vol. 92(1), pages 17-53.
- 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.
- Graham Pyatt & Chau-nan Chen & John Fei, 1980. "The Distribution of Income by Factor Components," The Quarterly Journal of Economics, Oxford University Press, vol. 95(3), pages 451-473.
- Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
- Fields, Gary S, 1979. "Income Inequality in Urban Colombia: A Decomposition Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(3), pages 327-341, September.
- Quan, Nguyen T., 1989. "Concentration of income and land holdings : Prediction by latent variables model and partial least squares," Journal of Development Economics, Elsevier, vol. 31(1), pages 55-76, July.
- von Braun, Joachim & Pandya-Lorch, Rajul, 1991. "Income sources of malnourished people in rural areas: Microlevel information and policy implications," IFPRI working papers 5, International Food Policy Research Institute (IFPRI).
- 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.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:836. 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: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.