Abstract
This study has two-fold objectives. First, analyze the rural income inequality and its decom_x0002_position by employment status and education of the household. Second, analyze the income inequality of districts of Pakistan located at the China-Pakistan Economic Corridor (CPEC). Theil Index, a member of the generalized entropy inequality and inequality decomposition technique. Furthermore, the Geographic Information System-GIS was used to map the rural income (agricultural and non-agricultural). Pakistan Social and Living Standards Measurement Survey (2012-13), provincial and district representative data set, was used. Results show that the households mainly earned from agriculture and those in which heads had the post-sec_x0002_ondary qualification make the largest contributions to rural income inequality. A decomposi_x0002_tion of income inequality within and between districts on CPEC routes indicates higher variations. GIS-based mapping of rural income depicts districts on routes of CPEC having a large non-agricultural income.