The
objective of the present study was to measure income inequality and to analyze
determinants of income inequality of the households in the study area conducted
in three villages Madinaabad, Shamshikhan, and Ziarat were randomly selected
from the Lower Dir district. Data were randomly collected from 82 sample
households with the help of an interview schedule. Gini-coefficient, Palma ratio was used to measure income
inequality in the selected area while Lorenz curve was used to represent income
and inequality. A logistic regression model was used for analyzing the
determinants of income inequality of the households in the research area.
Results of the study revealed that the value of Gini-coefficient for villages
Madinaabad, Shamshikhan, Ziarat and for the overall area were 0.22, 0.30, 0.34,
and 0.31 while Palma ratio for villages Madinaabad, Shamshikhan, Ziarat, and
for the overall area were 0.63, 0.88, 1.14 and 1.06, respectively. Results of
binary logistic regression showed that the odds ratio of age, education and the number of dependents was 1.084, 0.862,
and 0.306, respectively, which showed that income inequality increases with the
increase of one year of age by 8.4 percent. In contrast, education and earners
decrease income inequality in the research area. Based on research findings,
providing quality education and proper use of land resources can reduce income
inequality in the study area.
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