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Estimation of Distribution of Income in Pakistan, Using Micro Data

Author

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  • Mehboob Ahmad

    (Department of Economics, Allama Iqbal Open University, Islamabad.)

Abstract

Income distribution entered the post war discussion of economic development fairly late. Until the 1960s much of the focus was on industrialisation and the need for capital accumulation. Pakistan was no exception as in the early 60s economic expansion became the main target and means to political identity. Rapid population growth associated with steep decline in mortality demanded acceleration of production to keep pace. Overall aggregate expansion was much faster than before but without benefit for the poor. In that context emerged a new professional interest in income distribution. Haq’s (1964) study was one of the oldest studies conducted to measure inequality in personal income distribution in the high income brackets in the urban areas of Pakistan. The main objective of the author was to present the income distribution pattern in terms of the relative shares of different income groups as well as in terms of Pareto coefficients and concentration ratio during the period 1948-49 to 1957-58 for which published tax data was available. While recognising the limitations of the data used, the author went on to calculate various measures of income inequality including Pareto coefficient and Lorenz curve. The author also made comparison of Pakistan’s income distribution with U.S.A. and U.K.

Suggested Citation

  • Mehboob Ahmad, 2000. "Estimation of Distribution of Income in Pakistan, Using Micro Data," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 807-824.
    • Handle: RePEc:pid:journl:v:39:y:2000:i:4:p:807-824
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    File URL: http://www.pide.org.pk/pdf/PDR/2000/Volume4/807-824.pdf
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    References listed on IDEAS

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    Cited by:

    1. Nadia Zakir & Muhammad Idrees, 2009. "Trends in Inequality, Welfare, and Growth in Pakistan, 1963-64 to 2004-05," Microeconomics Working Papers 22983, East Asian Bureau of Economic Research.
    2. 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.
    3. Shams, Khadija, 2012. "Income inequality in rural Pakistan-sources and decompositions," MPRA Paper 39318, University Library of Munich, Germany.
    4. Amir-ud-Din, Rafi & Rashid, Abdul & Ahmad, Shabbir, 2008. "Democracy, Inequality and Economic Development: The Case of Pakistan," MPRA Paper 26935, University Library of Munich, Germany.
    5. Talat Anwar, 2010. "Role of Growth and Inequality in Explaining Changes in Poverty in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(1), pages 1-17.
    6. Muhammad Aslam & Arslan Saeed & Saima Altaf, 2014. "Median Regression Analysis of Gender-wise Income Gap in Punjab, Pakistan," Economy, Asian Online Journal Publishing Group, vol. 1(1), pages 15-19.
    7. Maqbool H. Sial & Asma Noreen & Rehmat Ullah Awan, 2015. "Measuring Multidimensional Poverty and Inequality in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 685-698.
    8. Talat Anwar, 2003. "Trends in Inequality in Pakistan between 1998-99 and 2001-02," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 809-821.

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