The Construction of a Human Development Index at the Household Level and the Measurement of Human Development Disparities in Punjab (Pakistan)

Abstract

The key objectives of this research study are to construct a valid and reliable household-based Human Development Index (HDI) and to estimate human development disparities in 36 districts of Punjab (Pakistan) by analysing Multiple Indicator Cluster Survey microdata. The household-level HDI, a composite index, is constructed by applying the arithmetic mean of the household-level health, asset, and education indices. The district of Lahore, among all the 36 districts of Punjab, has the highest HDI score of 0.743, followed by districts Rawalpindi, Jhelum, and Gujrat. Four neighbouring districts from South Punjab: Rajanpur, Dera Ghazi Khan, Muzzaffar Gar, and Rahim Yaar Khan, have the lowest HDI scores of 0.492, 0508, 0.531, and 0.566, respectively. This paper has used the Palma-ratio and Gini-coefficient to estimate human development disparities in Punjab. The highest human development disparities are observed in the Rajanpur district with a Gini-coefficient of 0.38 and a Palma Ratio of 1.55. Both the Gini and Palma Ratio methods produce similar district rank orderings of inequality. This research recommends that additional efforts be made to uplift the districts with the lowest human development in Southern Punjab through local government restructuring and devolution of relevant powers, including the formation of a separate province.