Sources of Income Inequality in Rural Pakistan: A Decomposition Analysis

Richard Adams () and Harold Alderman

Oxford Bulletin of Economics and Statistics, 1992, vol. 54, issue 4, 591-608

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

Date: 1992
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