Gender Wise Distribution of Income Using L-Moments Method

Abstract

The main purpose of this work is to explore the income distribution of both male and female in Pakistan over the period of 2010-2011. For this purpose, the lognormal distribution with known parameters is used as a model and its unknown parameters are estimated by three methods that are likelihood, moments and L-moments. The results show that citizens of Pakistan are not equal in income and the probability plot suggested that the income of the male is greater than that of a female in Pakistan. Moreover, for small sample size, the best method of parameters estimation is the L-moments, while, for large sample size the best method is a maximum likelihood. Findings of the study suggest that suitable policy is required to maintain equality in income distribution in the country. It will consequently reduce the gap among rich and poor and will certainly improve social welfare.