Abstract: (54 Views)
Introduction: Economic inclusion, or in other words, women's participation in the formal economy, contributes to the advancement of key economic aspects, particularly poverty reduction, improvement in structural transformations in the labor market, and consolidation of women's welfare. Therefore, efforts to identify the factors affecting it in societies continue. The purpose of the present study is to analyze the threshold effects of income inequality and good governance on women's economic inclusion in Iran.
Method: The current research was conducted for the years (2005–2023) using the Smooth Transition Regression (STR) method. Women's labor force participation, the Gini coefficient, and the average of the six World Bank good governance indicators were considered as women's economic inclusion, income inequality, and good governance, respectively.
Findings: Income inequality lagged by two periods was the transition variable of the women's economic inclusion function, with a threshold value of 0.71 percent (equivalent to a Gini coefficient rank of 0.512) and a transition speed of 13.45. Income inequality has a negative effect on women's economic inclusion in both regimes, and this effect is strengthened in the second regime. Good governance has a positive effect in the first regime and a negative effect in the second regime, indicating an inverted U-shaped effect.
Discussion: The strengthening of the negative effect of income inequality in the second regime suggests an increased impact due to women's lack of access to educational and academic opportunities, which has led to their inability to secure suitable employment. The inverted U-shaped effect of good governance indicates the dependence of governance effectiveness on social and economic class. Accordingly, the government should adopt policies to reduce income inequality, particularly preventing it from reaching the threshold level, as well as improving the quality of governance.
Method: The current research was conducted for the years (2005–2023) using the Smooth Transition Regression (STR) method. Women's labor force participation, the Gini coefficient, and the average of the six World Bank good governance indicators were considered as women's economic inclusion, income inequality, and good governance, respectively.
Findings: Income inequality lagged by two periods was the transition variable of the women's economic inclusion function, with a threshold value of 0.71 percent (equivalent to a Gini coefficient rank of 0.512) and a transition speed of 13.45. Income inequality has a negative effect on women's economic inclusion in both regimes, and this effect is strengthened in the second regime. Good governance has a positive effect in the first regime and a negative effect in the second regime, indicating an inverted U-shaped effect.
Discussion: The strengthening of the negative effect of income inequality in the second regime suggests an increased impact due to women's lack of access to educational and academic opportunities, which has led to their inability to secure suitable employment. The inverted U-shaped effect of good governance indicates the dependence of governance effectiveness on social and economic class. Accordingly, the government should adopt policies to reduce income inequality, particularly preventing it from reaching the threshold level, as well as improving the quality of governance.
Article number: 10
Keywords: Good Governance, Income Inequality, Smooth transition Regression method, Women Economic Inclusion.
Type of Study: orginal |
Received: 2025/07/4 | Accepted: 2026/04/11
Received: 2025/07/4 | Accepted: 2026/04/11
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Social Welfare Quarterly
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