Income Inequality, Regional Diversity and Household at Cities Level
Long, Lin Wan
Hassan, Shahbaz Gul
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CC BY-NC-SA 4.0
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Household income and per capita household income inequalities refer a gap between the incomes of households. Economics disparities persist between the districts of Punjab, Pakistan. Household and per capita income inequalities are increasing year to year within and between the cities of Punjab. Such inequalities clearly describe that gap between high, middle and low income is widening in these areas. These inequalities create many serious mental conflicts between populations. This paper tries to evaluate the household income inequality within and between small and large cities of Punjab. For this purpose, it uses the primary data of 1500 household. With the help of Gini coefficient and Theil Index, it is found that the income inequality is high in Small cities with relative to Medium and Big cities (district). These inequalities are ranging from 30% to 50%. Average household income is found to be significant between cities. Regression result of household income for each cities level differentiate that small and medium cities have lower coefficient of industrial sector and private services sector and other sector dummies relative to large cities. These sectors are needed to be developed and improve in these areas. Industrial promotion and improvement is necessary. Government has lot of challenges and many districts needs attention to develop.