Social inequalities are increasing with alarming rate, it influences the
growth and development of the country and bring nation from poor
state to poorer state. The paper reviews the interaction between
circumstances and efforts of individuals of urban Punjab according to
the theory of Equality Of Opportunity (EOP). The study used the
concept of meritocracy, and checked the effect of meritocracy with
different levels of efforts on outcomes (income) while keeping
circumstances constant. Micro cross sectional data were taken from
PSLM (2005-06 Round II). The study used two main variables,
circumstances and efforts. Occupation and age were the proxy of
circumstance and education was the proxy of effort (independent
variable).Income was the proxy of outcome (dependent variable).
Completely Randomized Design (CRD) was used to check the
interaction between circumstance and effort variables. Odds ratios
measured by the multiple logistic regression indicated that high
qualified individuals, on average, were two times more likely to get
outcome than the less educated. Graduated had also significant share
in outcome earnings but less than earnings of high educated. Results
revealed that outcome inequality exists in urban Punjab under the
shadow of meritocracy.