gender differential paper IJCRB

ijcrb.webs.com
JUNE 2011
INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 2
the two middle groups (33.33 percent middle household) possess only 17.94 percent share in
total income.
The share of highest 16.67 percent household in total income of district Kohat is 15.44 percent
and the share of next highest 16.67 percent household is 59.17 percent. Collectively the two
highest groups (33.33 percent highest household) possess 74.61 percent share in total income.
The table clarified that only highest 16.67 percent household possesses over half of the total
income.
A common measure to analyze inequality graphically is known as Lorenz curve. . The 45 degree
line shows that the total income is equally distributed among the households. The bended curve
is known as Lorenz curve and shows unequal distribution of income. Greater the difference
between the 45 degree line and Lorenz, greater well be the inequality.
The numbers of households are plotted on the horizontal exes and income of these households on
the vertical axes, not in absolute form but in cumulative form. For example the first point at the
horizontal exes represents 16.66 percent of the bottom households. The next point shows 33.33
percent of the bottom households and the sixth point represents the 100 percent of the
households which are 150. Similarly first point on the vertical exes represents 16.66 percent of
the total income, second point shows 33.33 percent of the total income and the last point shows
100 percent or total income.
Figure I. Lorenz Curve, Showing Income Inequality for District Kohat
120
100
80
60
household
income
40
20
0
1 2 3 4 5 6
Source: Field Survey, 2009
Table IV.
Households
(Percent)
Distribution of Income in Kohat urban.
Cumulative Frequency Total Share of Total
of Household (Percent) Income Income
(Percent)
Lowest 16.67 16.66 80390 2.96 2.96
Next Lowest 16.67 33.33 166663.33 6.14 9.09
Middle 16.67 50 230980.67 8.50 17.60
Next Middle 16.67 66.67 331050 12.19 29.89
Highest 16.67 83.34 472087.33 17.38 47.17
Next Highest 16.67 100 1434632.5 52.82 100
Cumulative
Frequency of
Income (Percent)
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