On Measuring Inclusiveness of Growth in Pakistan.

Saima Asghar, Sajid Amin Javed

Abstract


Using social opportunity function approach, this work
assesses, firstly, the change in and access to education and employment
opportunities available to the population and secondly, how equitably
these opportunities are distributed. Opportunity Index (OI) and Equity
Index of Opportunities (EIO) are calculated to measure and quantify the
extent of progress made in these two most important socio-economic
components of development. Based on data, extracted from Pakistan Social
and Living Standards Measurement (PSLM) Surveys of 1998-99 and 2007-08,
the present work finds that growth process has resulted in increased
inequalities both in education and employment opportunities over the
study period. Average opportunities available to population increased
for education while a decline in average employment opportunities is
documented in 2007-08 as compared to 1998-99. OI registered an increase
for primary and secondary levels of education. EIO improved at primary
level, remained stagnant for secondary level and decreased for literacy
rate over the time. Moreover, EIO for employment opportunities,
suggesting equitable distribution for employment and paid employment,
registered a decrease and opportunities distribution turn inequitable
when calculated based on average monthly income earned. Findings of the
paper suggest that policies should be focused to actively engage the
marginalised groups of the society in growth process through improvement
in higher education and more equitable distribution of opportunities.
JEL classification: C46, D63, E24, I24, O12 Keywords: Inclusive Growth,
Inequality, Opportunity Curve, Opportunity Index, Equity Index of
Opportunities, Pakistan

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DOI: https://doi.org/10.30541/v50i4IIpp.879-894

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