Regional Comparative Analysis of Personal Income Inequality in Pakistan

Abstract

This study paper's main goal is to provide an econometric analysis of Pakistan's income distribution pattern on three levels: overall, province as regional. In this empirical study, trends are presented and compared with two distinct micro-level data sets that show either rising or falling inequality. Either a rise or fall in inequality is not of importance to us. Nonetheless, scholar efforts to pinpoint the social and economic elements that contribute to rising or falling inequality are crucial. We have used a few criteria for this, such as the household's educational attainment, family size, and various income brackets. We broke down the data in this descriptive analysis into various levels, such as based on provincial.Three distinct indices, the Gini, Atkinson, and Generalized Entropy were employed in the empirical investigation to assess inequality. The most recent data rounds for the Pakistan Social Living Measurement (PSLM/HIES) were conducted in 2015–16 and 2018–19. The main goal of this research is to enhance the social and economic circumstances of Pakistani citizens by contributing to planning and policy-level studies.

Keywords: Income, Inequality, Indices, Gini, Atkinson, Entropy, Province, PSLM, STATA, DASP