There exist huge earning differentials across the districts of Pakistan. The
present study is an attempt to analyze the factors that can be attributed to
differences in earnings across the districts of Pakistan. The results show that
proportion of educated earners, efficient age group earners and dependency
ratio had a positive impact on the average earnings, while the proportion of
female earners had negative effect on average earnings. Moreover, the impact
of socio-development factors; like infrastructure, health units and provincial
capital had a favorable effect on the average earnings of individuals. On the
other hand, terrorist attacks results in lowering the average earnings.