2. INEQUALITY

3. Group Members
• Hina Khalid 10070621-001
• Iqra Farooq 10070621-009
• Maria Aslam 10070621-017
• Ali Irfan shah 10070621-031
• Hinza Riaz 10070621-045
• Umer Jalil 10070621-053
• Gulsher 10070621-055
• Hassan Naqi 10070621-063

4. Hina Khalid
10070621-001
TOPIC
Measurements of
inequality

5. Measurement of Inequality
• Kuznets Ratio
• Lorenz Curve
• The Gini Coefficient
• Gender Inequality Index

6. Kuznets Ratio
• The Kuznets ratio is a measurement of the ratio
of income going to the highest-earning
households (usually defined by the upper 20%)
and the income going to the lowest-earning
households
• Commonly measured by 40% lower and 20%
higher income receiving groups. Comparing 20%
to 20%, perfect equality is expressed as 1; 20% to
40% changes this value to 0.5.

7. CONT…
• Kuznets had two similar explanations for this
historical phenomenon
• workers migrated from agriculture to industry;
and rural workers moved to urban jobs.
• In both explanations, inequality will decrease
after 50% of the shift force switches over to
the higher paying sector.

8. Lorenz curve
• A model developed
by economist Max
Lorenz in 1905.
• It is often associated
with income
distribution calculations

9. Iqra Farooq
10070621-009
TOPIC
Measurements of
Inequality

10. The Gini Coefficient
Invented by the Italian statistician Corado Gini. An
equality diagonal represents perfect equality: at every
point, cumulative population equals cumulative income.
• A – Equality Diagonal
Cumulative Income
A
Population = Income
• B – Lorenz Curve
C • C – Difference Between
Equality and Reality
B
Cumulative Population

11. Gender Inequality Index
• A composite measure reflecting inequality in
achievements between women and men in
three dimensions
• Reproductive health
• Empowerment
• The labor market.

13. Umer Jalil
10070621-053
TOPIC
Inequality in Pak
w.r.t Gini
coefficient

14. INEQUALITY ACCORDING TO GINI
COEFFICIENT OF PAKISTAN 1963-99
Years Rural areas Urban areas Total
1963-64 0.348 0.368 0.355
1966-67 0.314 0.388 0.351
1968-69 0.293 0.37 0.328
1984-85 0.345 0.379 0.428
1985-86 0.33 0.354 0.355
1987-88 0.307 0.366 0.348
1990-91 0.41 0.390 0.407
1992-93 0.367 0.384 0.39
1994-95 0.40 0.35 0.40
1996-97 0.41 0.38 0.40
1998-99 0.40 0.33 0.41

15. Explanation
• Inequalities in urban areas were higher than in
rural areas.
• According to their analysis, inequality
increased in both urban and rural areas of
Pakistan during 1969-70 and 1979.
• For Pakistan, the value of the Gini-coefficient
was 0.329 in 1969-70 and 0.376 in 1979

16. CONT…
• It is observed that during 1980s income distribution
improved from 0.428 in 1984-85 to 0.348 in 1987-88.
During the same period, the Gini-coefficient for rural
areas improved from 0.345 to 0.307 while there was a
little improvement in the income distribution in the
urban areas of Pakistan. The Gini-coefficient
decreased from 0.379 in 1984-85 to only 0.366 in
1987-88 as shown in table.

17. Irfan Shah
10070621-031
TOPIC
Inequality in India
w.r.t Gini
coefficient

18. Inequality According To Gini
Coefficient Of India
YEAR GINI COEFFICIENT
I970 30.38
1977 32.14
1983 31.49
1990 29.69
1992 32.02
1999 29.95
2002 42.00
2004 35.5

19. CONT…
Dr Sonali Bhattacharya
Symbiosis Centre of Management and Human Resource Development,
Hinjewadi, Pune-411057
INDIA

20. Hinza Riaz
10070621-45
TOPIC
Inequality in
Bangladesh w.r.t
Gini coefficient

21. Bangladesh
• Bangladesh is considered as a developing
economy which has recorded GDP growth above
5% during the last few years
• Three fifths of Bangladeshis are employed in the
agriculture sector, three quarters of exports
revenues come from garment industry.
• Obstacles to sustainable development in
Bangladesh are overpopulation, poor
infrastructure, corruption, political instability and
a slow implementation of economic reforms.

22. Maria Aslam
10070621-017
TOPIC
Least Inequality in
Different Countries

23. 5 Countries with least Inequality
• Luxembourg 26.0
• Serbia 26.0
• Norway 25.0
• Hungary 24.7
• Sweden 23.0

24. Gulsher
10070621-055
TOPIC
Inequality in
Different Countries

25. 10 Countries with the Worst Inequality:
• The UNDP ranked countries and regions based on a
number of factors, including their Gini coefficient,
named for Italian statistician Corrado Gini.
• We have listed the world's most advanced economies
based on their Gini score, with zero marking absolute
equality and 100 absolute inequalities

26. CONT…
• Hong Kong
• Singapore
• U.S
• Israel
• Portugal

27. Hassan Naqi
10070621-063
TOPIC
Inequality in
Different Countries

28. CONT…
• New Zealand
• Italy (tie)
• Britain
• Australia
• Ireland (tie)
• Greece (tie)

29. Rank of Pakistan and India
RANK COUNTRY GINI SCORE YEAR EST
79 India 36.8 2004
109 Pakistan 30.6 FY07/08
http://www.thinkonthat.com/archives/5420

31. CONCLUSION
• According to Gini coefficient Pakistan’s rank
is 109 and its Gini score is 30.6 so as
compared to India, Pakistan has more equality.
• The country with least inequality is Sweden
and the country with worst inequality is
Hong Kong
• Unequal distribution of power, prestige and
wealth is main reason of inequality.

32. References
• http://www.investorwords.com/6570/Lorenz_curve.html
• 2010 GII: Construction & Analysis
• http://www.thp.org/what_we_do/program_overview/empoweri
ng_women?gclid=CK-39LOF8KwCFQRO3godQzUXLw
• Dr Sonali Bhattacharya Symbiosis Centre of Management and
Human Resource Development, Hinjewadi, Pune-411057
INDIA
• Tradingeconomics.com
• http://www.thinkonthat.com/archives/5420
• http://finance.yahoo.com/news/pf_article_107980.html
• http://finance.yahoo.com/news/pf_article_107980.html