Abstract

Household budget surveys taken during the 1960s in (West) Pakistan indicate improving income distribution during the period. Yet, the popular perception was that income distribution was worsening. Data on wages and earnings in various sectors are examined to see if they confirm or deny this improving trend, and to examine the trends in distribution since the last survey in 1972. In general, the wage and earnings data confirm the trend towards an improving distribution of income during the 1960s, but suggest that distribution may have worsened during the 1970s. These trends, furthermore, seem to be clearly linked to government policies which influenced the pattern of growth during both periods, as well as real wages in different sectors.

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