The report finds that Sindh has the greatest intra-province inequality. PHOTO: AFP
Children born in income-poor families in Pakistan in the year 2010-11 are less likely than those born in the year 1994-95 to break their poverty trap and move to the middle class category, says a study conducted jointly by Oxfam Pakistan and three economists from the Lahore University of Management Sciences.
The findings of the Multiple Inequalities and Policies to Mitigate Inequality Traps in Pakistan study were released on Friday.
The study indicates that less than 30 per cent people born to income-poor families in 1994-95 were likely to remain poor. This figure increased to more than 40 per cent in 2010-11.
The study suggests that addressing social and economic inequalities could help reduce poverty in the country. It also recommends poverty mapping of districts so that development funds could be allocated based on a district’s poverty score. It says that consumption taxes should be made less regressive and that food and other basic needs should be made tax-free.
The study identifies income, education and occupation as three main inter-generational inequality traps in the country. Majority of the children born to families with low income and education levels and members employed in elementary occupations are likely to follow in their parents’ footsteps.
According to the study, majority of the asset-rich households are located in north and central districts of the Punjab. All 10 districts with the highest number of households with above average asset scores are located in north and central region.
The report finds that Sindh has the greatest intra-province inequality.
The index for household asset level has been based on 30 indicators. These include household’s ownership of land, cattle, consumer goods, transport equipment and houses, construction quality of houses and nature and quality of public services available to them.
The study says that more children are likely to attend school now compared to earlier generations. However, it finds huge inequalities in terms of access to education. It says that only 50.8 percent children from income-poor households attend schools compared to 82.3 percent from income-rich households. It also says that girls are less likely to go to school than boys.
It states that with women participation in the work force at 20 percent, Pakistan ranks last among the South Asian Association for Regional Cooperation (SAARC) countries. Most of the working women in Pakistan are employed in the agriculture sector. About 80 per cent of the women employed in the agriculture sector are unpaid family workers. The study also states that women own less than three per cent of the land in the country.
Speaking at the launch ceremony, Dr Khalid Mir, one of the economists who conducted the study, stressed the need for more research to gauge the relationship between inequality and economic growth. “If it is established that inequality leads to inefficiency, one can argue that greater equality is preferable for high economic growth,” he said. He said regardless of its impact on growth, socio-economic equality has a positive correlation with high levels of social and political development.
Dr Rashid Memon, another member of the research team, called for tax reforms to check the high levels of inequality in the country.
Published in The Express Tribune, March 14th, 2015.
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