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| Multidimensional Inequality in Pakistan |
| Junaid Zahid* |
| Aadil Hameed Shah** |
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| This paper examines different approaches used
for measuring uni-dimensional and multidimensional inequality in Pakistan as a
whole, and its urban-rural segments as
well as provinces by using the Pakistan Social Standard Measurement (PSLM) and
Household Integrated Economic Survey (HIES) data of 1998-99 and 2013-14. For estimation
of the extent of the problem Gini-coefficient and Araar (2009) methodology are
used by adopting four basic dimensions: consumption as a proxy of income is
adopted for uni-dimensional inequality estimation; whereas education, health
and housing services are used for the measurement of multidimensional
inequality. The result of the study shows
that due to trickle-down effect over time inequalities declined in both.
However, income inequalities in urban areas are quite high because of unequal
distribution of income among different groups; and due to higher disparities in
all variables multidimensional inequality is higher in rural areas. Provincial
measures showed that Punjab mostly consists of urban areas and has higher
income inequality; while Balochistan with more rural areas has higher
multidimensional inequality. One can conclude that due to wage differential in
different income groups uni-dimensional inequality in urban areas is
significantly high making it more of an urban
phenomena, whereas multidimensional inequality is a rural phenomena
because wider gap in social variables cause higher inequality in rural areas.
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Mr Junaid Zahid is a researcher at the
Sustainable Development Policy Institute in Islamabad, Pakistan.
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Mr Aadil Hameed Shah is an MPhil student at the
Pir Mehar Ali Shah Arid Agriculture University in Rawalpindi, Pakistan.
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