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Sources of Income Inequality in Pakistan

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  • HANS DE KRUIJK

    (Erasmus University Rotterdam, the Netherlands.)

Abstract

In a paper presented at the 1985 Conference of this Society [Kruijk and Leeuwen (1985)] we described some structural changes in poverty and income inequality in Pakistan during the 1970s. All inequality measures and poverty indicators pointed to the conclusion that poverty has declined while at the same time inequality has increased. Htlwever, the paper did not go deep enough into the reasons why inequality has increased. It did appear that neither the urban/rural distinction nor interprovincial income differences are important determinants of overall income inequality in Pakistan 1 so that these elements cannot contribute much to explaining changes in inequality. In his comments, Kernal, (1986) suggests to extend the applied decomposition technique by decomposing income also into its sources. This is precisely the purpose of the present paper.

Suggested Citation

  • 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.
    • Handle: RePEc:pid:journl:v:26:y:1987:i:4:p:659-672
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    File URL: http://www.pide.org.pk/pdf/PDR/1987/Volume4/659-672.pdf
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    References listed on IDEAS

    as
    1. Mohammad, Irfan & Amjad, Rashid, 1994. "Poverty in rural Pakistan," MPRA Paper 38335, University Library of Munich, Germany.
    2. Nadeem A. Burney, 1986. "Sources of Pakistan's Economic Growth," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 25(4), pages 573-589.
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    Cited by:

    1. Rizwana Siddiqui & A. R. Kemal, 2006. "Remittances, Trade Liberalisation, and Poverty in Pakistan: The Role of Excluded Variables in Poverty Change Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(3), pages 383-415.
    2. Muhammad Idrees & Eatzaz Ahmad, 2010. "Measurement and Decomposition of Consumption Inequality in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 15(2), pages 97-112, Jul-Dec.
    3. S. M. Naseem, 2012. "A Review Of Studies On Poverty In Pakistan: Origin, Evolution, Thematic Content And Future Directions," PIDE Books, Pakistan Institute of Development Economics, number 2012:1 edited by Rashid Amjad, October.
    4. G. M. Arif & Hina Nazli & Rashida Haq, 2000. "Rural Non-agriculture Employment and Poverty in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 1089-1110.
    5. 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.

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