Income inequality in Pakistan

Abstract

PurposeIn most developing countries like Pakistan, the gap between rich and poor has widened over time. This polarization in the society hinders economic growth and acts as a barrier for development and well-being. The proportion of income distribution varies across the population sub-groups in Pakistan. Therefore, it is important to study the income distribution effects across the four provinces of Pakistan.Design/methodology/approachThis study attempts to explore the root causes of income inequality and its changes in a dynamic context across the four provinces of Pakistan over a decade (2005–2006 to 2015–2016) by using a regression-based inequality decomposition method.FindingsAge, gender and higher education are the most prominent factors explaining the level of inequality across the four provinces of Pakistan. Higher education enhances the level of inequality in all provinces but contributes negatively to its changes except for Balochistan. Skilled agricultural and fishery workers in Balochistan have contributed significantly to reducing the level of inequality over the decade but not to its changes. Healthy contribution of the unpaid family workers in economic activities has reduced the level of inequality in Punjab and Balochistan and contributed positively to the change in income inequality. Employer or self-employed workers enhance the level of income inequality but contribute negatively to its changes for Punjab and Balochistan.Originality/valueTo date, inequality literature on Pakistan focuses on economic growth and poverty. A handful studies focus on the determinants of income inequality in a static context. This study goes beyond the static decomposition tools and attempts to explore the determinants of inequality in a dynamic context.Peer reviewThe peer review history for this article is available at https://publons.com/publon/10.1108/IJSE-09-2021-0573.

Does educational inequality lead to income inequality? Evidence from Pakistan

“…Our results remain stable with the inclusion of other proxies of InIn (i.e., generalized entropy and Atkinson). These results are consistent with those of Munir and Kanwal [42], Akram, et al [41], and Islam, et al [48].…”

“…So, the education gap produces an income gap, which causes the problem of InIn. These findings are in line with those of Munir and Kanwal [42], Akram, et al [41], and Islam, et al [48]. Other columns show the result when EduIn is measured in terms of other inequality measures.…”

“…Ho: β1= 0 (There is no connection between InIn and EduIn.) H1: β1 >0 Munir and Kanwal [42], Akram, et al [41], and Islam, et al [48] showed that there is a positive and significant relationship between InIn and EduIn. So, it is expected that there may be a positive connection between them).…”

The Relationship between Types of Political Regimes and Income Inequality in Pakistan

“…The impact of income inequality extends beyond economic aspects and influences the political landscape as well (Clark, 2001;Miller, 2001). According to a study conducted by Islam, Abrar, Arshad, and Akram(2022), age, gender, and higher education emerge as the primary factors contributing to inequality levels across the four provinces of Pakistan. Interestingly, higher education is identified as a factor that exacerbates inequality in all provinces.…”

Subjective assessment of women's economic welfare in public sector organizations of Mardan, Northern Pakistan

“…From Pakistan's perspective, age, gender and higher education are significantly affecting income inequality (Islam et al, 2022). Income inequality is a great challenge to equality efforts by hampering the means for health, education and economic opportunities.…”