Measuring inequality of opportunity in Pakistan: parametric and non-parametric analysis

Type Journal Article - Pakistan Economic and Social Review
Title Measuring inequality of opportunity in Pakistan: parametric and non-parametric analysis
Author(s)
Volume 54
Issue 2
Publication (Day/Month/Year) 2016
Page numbers 165-195
URL http://pu.edu.pk/images/journal/pesr/PDF-FILES/1-v54_2_16.pdf
Abstract
The present study estimates inequality of opportunity for
Pakistan by using parametric and non-parametric analysis. Pakistan Social
and Living Standard Measurement Surveys of two time periods, 2005-06
and 2010-11, have been utilized. Father’s education, mother’s education,
father’s occupation, region of residence, and gender have been used as the
circumstance variable while labour earnings and household income per
capita are outcome variables. Three indices of Generalized Entropy
measures have been utilized to estimate inequality of opportunity. Results
depict that inequality of opportunity in labour earnings declines by 11
percentage points in Pakistan, during study period. The inequality of
opportunity, for household income per capita, declines by 16 percentage
points for Pakistan. Among all circumstances, gender is the highest
contributor followed by region of residence, father’s education, and
father’s occupation.

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