Group inequality and regional development: Evidence from Pakistan

This study explores the patterns and consequences of ethnic and regional inequalities in Pakistan. Using inter-district variation in inequality, ethnic fractionalization, and access to public goods, we extend the literature on public service provisioning by using finer estimates of between-group inequality along multiple dimensions. We also provide the first estimates of horizontal and vertical inequality at the district level in Pakistan. We find that higher group inequality in land, income, and electoral votes is negatively associated with access to public goods. But higher vertical inequality along the same dimensions is positively associated with public goods provisioning.