Empirical Analysis Of Income Inequality And Its Causes

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Ume Ruqia Saadat & Dr. Muhammad Naimatullah Babar


The present study was aimed to analyze the income inequality and its cause. The key objective of the study was to find out the income disparity among the household in perspective of their different demographic characteristics. The study was conducted in three districts i:e Dera Ismail Khan, Charsada and Malakand. The nature of the study was survey in nature. Therefore, a questionnaire was used to collect data from the households. A sample of 400 households was taken out of 410161 households. ANOVA and Independent sample t-test was used for data analysis whereas Coefficient of Variation (CV) was used to measure the income disparity among the households in term of their demographic attributes. The result of the study indicates that gender play a role in the income inequality. Female had fewer opportunities as compared to male in the sample districts. The study also found that significant difference in male and female households’ income literacy is one of the key issues in selected districts which cause income inequality among the households. High qualified households earn more wages as compared to low qualified households.

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