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This study aims to examine the socio economic determinants of income
inequality in Pakistan. For this analysis, data was taken from Pakistan Social and
Living Standards Measurement (PSLM) 2013-14. Squared Coefficient of Variation
(SCV) is used as dependent variable to measures income inequality. OLS regression
model was used and the results show that individual level variable, i.e. gender, age
and education level have positive impact on income inequality while age-square,
marital status and occupation have negative impact on income inequality in
Pakistan. The impact of family size and dependency ratio on income inequality in
significantly positive indicating that increase in family size and non-working
individuals in household induce income inequality. Income received through transfer
payments or remittances reduce income inequality. It is recommended that in
improving the quality of education and by reducing the gap of education vs
uneducated, income inequality may decline. Different support programs and transfer
payments to the poor further reduce the gap of rich and poor.
Adiqa Kiani, Saima Sheikh, Sara Siddique. (2019) The Socio Economic Determinants of Income Inequality in Pakistan, Orient Research Journal of Social Sciences, Volume 4, Issue 1.
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