Econometric Analysis of Education-Based Individual Income Disparity in Pakistan

https://doi.org/10.55966/assaj.2025.4.1.074

Abstract

This study paper's main goal is to provide an econometric analysis of Pakistan's income distribution pattern on three levels called Gini, Atkinson and Generalized Entropy indices. In this empirical study, trends are presented and compared with two distinct micro-level data sets that show either rising or falling inequality in term of education of the households. However, scholar has made efforts to pinpoint the social and economic elements that contribute to rising or falling inequality. Scholar has used a few criteria for this, such as the household's educational attainment. Researcher broke down the data in this descriptive analysis into various levels but considered the education as main tool. 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, Education, PSLM, STATA, DASP