AN EMPIRICAL ANALYSIS OF HOUSEHOLD INCOME IN RURAL PAKISTAN Evidences from Tehsil Samundri

The study analyzed rural income inequality and the relationship of farm and non-farm sources with household income. The primary data of 104 rural households were collected by applying stratified sampling technique in the district Faisalabad, Punjab. Lorenz curve, Gini coefficient and coefficient of variation were calculated. It was found that distribution of land was skewed as compared to income and livestock. Rural income was derived mainly from farm and non-farm sources. Non-farm activities were prevalent. It was found that among farm source of income, land and livestock were positively related whereas dependence on only farm occupation was negatively related with household income. Among non-farm source, rental income was positively related and dependence on only non-farm source was negatively related with household income. Education played a significant positive role in decreasing income inequality whereas income from assets like land, livestock and other non-farm assets showed an inequality increasing impact. In short, education as human capital filled the deficiency of physical capital to a significant extent.