Multidimensional Inequality and Well-being in Pakistan: Evidence from Household Level Data

Abstract

The present study investigated changes in multidimensional inequality in Pakistan. The study used Pakistan Social and Living Standard Measurement (PSLM) Survey datasets for three years 2001-02, 2007-08 and 2013-14. Three welfare distributions such as household per capita expenditures, access to education and health status are used in the study. The study employed Gini index, generalized entropy and stochastic dominance when inequality is measured for each dimension separately. The inequality is the highest in terms of education access. The stochastic dominance criteria demonstrate different orders for three attributes. The composite index is useful but social evolution function is not easy to construct as different formulations are considered. The pair wise technique has very useful policy implication when different attributes of welfare are distributed. The recommendations are made as specific regions or states should be focused where inequality is high. Moreover, efforts should also be made to narrow the skewed distribution of education.