Structure of Rural Income in Pakistan: Some Preliminary Estimates

Faiz Mohammad, Ghulam Badar


The main objective of this paper is to study the rural income
distribution in Pakistan by determining income accruing to farm and
non-farm households from various assets held by them. Most of the
existing literature on income distribution in Pakistan [3; 4; 8; 10; 12;
14; 17] focuses either on aggregate income or only on income from crops
and classifies rural households by their income level. It ignores the
internal structure of income as well as one of the main distinguishing
features of rural households, namely their relation to land. In a
developing country, however, the internal structure of income is likely
to change with changes in the level of income. It is therefore important
to assess the contribution of an individual factor (asset) to the
overall income of a household and its impact on income inequality.
Moreover in the case of Pakistan where land is becoming increasingly
scarce for small farmers [7; II] it should be interesting to know how
these farmers are trying to "fight back" the pressure on their land with
alternative sources of income.

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