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Sources of Income Inequality in Rural Pakistan: A Decomposition Analysis

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  • Adams, Richard H, Jr
  • Alderman, Harold

Abstract

This paper uses three-year panel data to identify the sources of income inequality in rural Pakistan. The paper first decomposes total rural income among five sources: agricultural, livestock, rental, nonfarm, and transfer. This decomposition shows that agricultural income makes the largest contribution to total rural inequality. The study then decomposes the sources of agricultural income inequality in order to understand how much of agricultural inequality is due to unequal landownership. The results show that returns to labor and crop profit make as large a contribution to agricultural income inequality as unequal landownership. Copyright 1992 by Blackwell Publishing Ltd

Suggested Citation

  • 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.
    • Handle: RePEc:bla:obuest:v:54:y:1992:i:4:p:591-608
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    1. 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).
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    7. Aly ERCELAWN, 1984. "INCOME INEQUALITY IN RURAL PAKISTAN: A study of sample villages," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 3(1), pages 1-28.
    8. 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, President and Fellows of Harvard College, vol. 92(1), pages 17-53.
    9. 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.
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    11. 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.
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    Cited by:

    1. Taylor, J. Edward & Mora, Jorge & Adams, Richard H., Jr. & Lopez-Feldman, Alejandro, 2005. "Remittances, Inequality and Poverty: Evidence from Rural Mexico," Working Papers 60287, University of California, Davis, Department of Agricultural and Resource Economics.
    2. Reardon, Thomas, 1997. "Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa," World Development, Elsevier, vol. 25(5), pages 735-747, May.
    3. Khadija Shams & Alexander Kadow, 2020. "Income inequality, remittances and economic wellbeing in rural Pakistan: linkages and empirical evidence," Asia-Pacific Journal of Regional Science, Springer, vol. 4(2), pages 499-519, June.
    4. Xu, Yecheng & Zhang, Yaoqi & Chen, Jiquan & John, Ranjeet, 2019. "Livestock dynamics under changing economy and climate in Mongolia," Land Use Policy, Elsevier, vol. 88(C).
    5. Shams, Khadija, 2012. "Income inequality in rural Pakistan-sources and decompositions," MPRA Paper 39318, University Library of Munich, Germany.
    6. Zhao, Sudan & Jiang, Yongmu, 2022. "Heterogeneous effects of rural–urban migration and migrant earnings on land efficiency: Empirical evidence from China," Land Use Policy, Elsevier, vol. 115(C).
    7. Amar Iqbal Anwar & Mazhar Mughal, 2012. "Remittances, inequality and poverty in Pakistan: macro and microeconomic Evidence [Centre d'Analyse Théorique et de Traitement des données économiques REMITTANCES, INEQUALITY AND POVERTY IN PAKISTA," Working Papers hal-01885153, HAL.
    8. Estudillo, Jonna P. & Quisumbing, Agnes R. & Otsuka, Keijiro, 2001. "Income distribution in rice-growing villages during the post-Green Revolution periods: the Philippine case, 1985 and 1998," Agricultural Economics, Blackwell, vol. 25(1), pages 71-84, June.
    9. Barrett, Christopher B. & Reardon, Thomas, 2000. "Asset, Activity, And Income Diversification Among African Agriculturalists: Some Practical Issues," Working Papers 14734, Cornell University, Department of Applied Economics and Management.
    10. Molden, David & Oweis, T. Y. & Pasquale, S. & Kijne, Jacob W. & Hanjra, M. A. & Bindraban, P. S. & Bouman, Bas A. M. & Cook, S. & Erenstein, O. & Farahani, H. & Hachum, A. & Hoogeveen, J. & Mahoo, Hen, 2007. "Pathways for increasing agricultural water productivity," Book Chapters,, International Water Management Institute.
    11. Puja Guha, 2014. "Economics of Migration and Remittances: A Review Article," Working Papers id:5618, eSocialSciences.
    12. Felix Naschold, 2009. "Microeconomic Determinants of Income Inequality in Rural Pakistan," Journal of Development Studies, Taylor & Francis Journals, vol. 45(5), pages 746-768.
    13. Fambon, Samuel, 2009. "Inequality in the Distribution of Household Expenditure in Cameroon," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 43, Verein für Socialpolitik, Research Committee Development Economics.
    14. Zsóka Kóczán & Franz Loyola, 2021. "How do migration and remittances affect inequality? A case study of Mexico," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(2), pages 360-381, March.
    15. Bogale, A. & Hagedorn, K. & Balu, G., 2001. "The Dimensions of Poverty and Inequalty: A Focus on Rural Households in Ethopia," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 37.
    16. Amara Amjad Hashmi & Maqbool H. Sial & Maaida Hussain Hashmi, 2008. "Trends and Determinants of Rural Poverty: A Logistic Regression Analysis of Selected Districts of Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 909-923.
    17. Alarcon, Diana & McKinley, Terry, 1997. "The rising contribution of labor income to inequality in Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 8(2), pages 201-212.
    18. Richard H. Adams, JR., 1993. "Non-farm Income and Inequality in Rural Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 1187-1198.
    19. Asma Kanwal & Nwakego Eyisi, 2023. "Income Inequality and Frontend Innovation: Evidence from Frontier Markets," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 255-286, March.
    20. Hari Ram Lohano, 2009. "Poverty Dynamics in Rural Sindh, Pakistan," Working Papers id:2334, eSocialSciences.
    21. Alderman, Harold & Garcia, Marito, 1993. "Poverty, household food security, and nutrition in rural Pakistan:," Research reports 96, International Food Policy Research Institute (IFPRI).
    22. Taylor, J. Edward & Mora, Jorge, 2006. "Does migration reshape expenditures in rural households? Evidence from Mexico," Policy Research Working Paper Series 3842, The World Bank.
    23. Mehtabul Azam, 2016. "Income Inequality in India 2004-2012: Role of Alternative Income sources," Economics Bulletin, AccessEcon, vol. 36(2), pages 1160-1169.

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