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Showing 11 results for Income Inequality

Faride Bagheri, Hossein Kavand,
Volume 7, Issue 28 (9-2008)
Abstract

Objectives: Since the late 1990s, when the term of Pro-poor Growth was first introduced, the economists have developed some new approaches as to the relation between the economic growth and poverty, and the combined effect of economic growth and income inequality alleviation on poverty reduction. Recently a new topic has been raised which studies the tri-lateral relations between the three concepts of economic growth, poverty and income inequality. The pro-poor growth refers to the kind of economic growth which brings about inequality alleviation in addition to primarily benefiting the poor population - a total economic improvement of the poor population of the community. To provide definition and measurement tools for the concept, there have been some recent efforts: (Kakwani & Pernai, 2000), (Ravallion & Chen, 2003), (Son, 2003). Drawing on the Poverty Growth Curve (Son, 2003) and the Second Order Dominance, the present study seeks to find out if the economic growth of Iran during 1995-2006 was pro-poor or anti-poor. Method: As mentioned above, for the economic growth to be pro-poor, there should be income inequality alleviation along with economic improvement of all community members. To this end, the community's income deciles are analyzed with regard to the changes in income inequality following changes in economic growth based on the Second Stochastic Dominance approach. The present paper aims to draw on Atkinson Proof to connect the Generalized Lorenz Curve with economic growth and inequality. In the following, based on the data from the Urban and Rural Households Income and Expenditure 1996-2005, the poverty growth curve and Lorenz curve are drawn and analyzed for Iranian households for the mentioned time period. Findings: According to the outcomes, the average income growth was pro-poor in the years 2000, 2003 and 2005 for urban areas. In the year 2002 the economic growth in all deciles increased but income equality decreased. And the average income growth was pro-poor in the years 1999 to 2002 for rural areas that's to say, in the mentioned years the poor population enjoyed more income increase than the rest of society and the income gap got narrower. Obviously, the index was anti-poor for the remaining years of the reference period. Results: During the 1996-2005 economic growth in most years has been pro‌poor in both urban and rural areas.
Mohamad Babakhani,
Volume 7, Issue 28 (9-2008)
Abstract

Objectives: Economic development, income inequality and health issues have integration. The relationship between population health, inequality in income, distribution and economic growth has attracted much attention during the last two decades. In other word, economic development, economic growth and income inequality as socioeconomic parameters or social determinants health (SDH) are effective for supply and promotion of health. In resent decade’s whit transformation in illnesses epidemiology from infectious diseases to chronic diseases, attention to social environmental and mental causes increased instead of clinical causes. The objectives purpose of this paper is to examine that relationship and regression analysis between income inequality, economic development and economic growth index with health index using Iran time- series data. We analysis included 31years, 1355-1385. Method: In this study used of correlation and regression analyses. For the selected years, Predictor’s variables are economic development, economic growth and income inequality. And dependent variables are life expectancy at berth and under 5year children mortality rate. In this study we used of economic growth as control variable. Necessary data and information for study correlated from the central bank and statistical center of han. For preparing the data used of EXCEL software, first we collected primitive and fresh data then interred theme EXCEL software to gain necessary data. The analysis of correlated data was done with the help of SPSS software. h) Findings: the propos of present study is analysis relationships between study variables. Gini coefficient has significant coloration (p<.001) with life expectancy (R=-0.73, P=0.000) also with under 5 years children mortality rat(R=0.77, P=0.000). And economic development has significant coloration (p<.05) with life expectancy (R=0.38, P=0.03) also with under 5year children mortality rat (R=-0.4, P=.0027). After used of partial coloration economic growth shown significant coloration (in p<0.01signification level). When regression analyses was don, observed that income inequality is stronger predictor to variance health variables (P=0.75, p=0.79). Results: the important difference of this study is to various indexes. This character helps to have deeper knowledge about variables. Decreasing of income inequality and increase economic development will cause of increase in health indexes (increase in life expectancy and decrease in fewer than 5year children mortality rat). According to data income inequality trend is decreasing and economic growth and economic development trends are variable. But health status trend is increasing. Although decreasing in economic growth on 1356‌1368, health indices were promoted. Because, during in this years, Islamic revolution governments whit society approach adopted social policies such as universal education, health care social security ,and social services such as subsides that resulting to increase in income inequality. By attention to findings of regression analyses, before that economic growth interred to model, income inequality was stronger variable than economic development (P=0.75, p=0.79). But with existed economic growth, economic development was strongest variable. Generally, seem for health promotion, we must be attention to both economic development and income redistribution issues.


Hossein Sadeghi, Mehdi Basakha, Vahid Shaghaghi,
Volume 8, Issue 33 (7-2009)
Abstract

Objectives: Because of 16’s economical vicissitude and increasing gaps between countries in production affairs, almost all of economic schools have special attention on poverty and that’s efficacious factors, as a cause and consequence of underdevelopment. Part of the ongoing debate on poverty reduction strategies bear on the issue of the actual contribution of economic growth to poverty reduction. There is no doubt that faster economic growth is associated with faster poverty reduction. But what is the corresponding elasticity? With contemplate the importance of poverty present study aims to find answers of a main question. How much is the influence of economic growth on Inequality and poverty? Method: Sake to find answer, we attempt to collect data of 50 developed and developing countries (include Iran) for 3 period (1993-1996, 1997-2000 and 2001-2004). Based on this data set, three different econometric models are estimated. The first model alluded to measure elasticity between poverty reduction and growth. It consists of regressing observed changes in the proportion population with less than 1$ per day on observed changes in GDP growth and unemployment rate. The second model has a same structure like previous model, but we employ other indicator to measuring absolute poverty this indicator is proportion of population that live under national poverty line. The final model includes the observed change in income inequality, as measured by the Gini coefficient, economic growth and unemployment rate. To survey impressionability of absolute poverty and income inequality from economic growth, we estimate these econometric models by Panel Date approach. Findings: Estimations results show that, in that periods, Variables like unemployment rate, economic growth and Gini index have significant and considerable role in reduction of absolute poverty, similarly, economic growth and unemployment have same effects on income inequality. Results: Undoubted, predisposing the economic growth and sustainable employment can effectively reduce poverty of nations.


M. H. Fotros, R. Maaboudi,
Volume 11, Issue 40 (4-2011)
Abstract

Objective: Income inequality affects consumption structure via changes in the composition of expenditure basket. Shocks, fluctuations, disparities, and dispersions of income inequality, is expected to be transmitted to consumption expenditures. These shocks might induce inequalities in consumption expenditures. This paper tries to measure the amount of such consumption expenditures inequalities that are derived from income inequality. Method: To measure the consumption expenditures inequality and income inequality, the variance of logs is employed. For this purpose, Iranian urban households’ data of the period of 1982 to 2007 is used. To analyze relations between variables, panel data methodology is applied. Findings: All fluctuations of income distribution do not translate in consumption expenditure distribution. Conclusion: The distribution of households’ consumption expenditure in comparison to the distribution of income is less subjected to fluctuations and variations.
Yadollah Dadgar, Rouhollah Nazari,
Volume 11, Issue 42 (10-2011)
Abstract

 

intorduction: Subsidy policy has been one of the most challenging economic policy, especially after1970s.Current Iranian government claims that it has started the reforming policy in connection with subsidy plan from December 2011.Although reforming policy is theoretically urgent and helpful policy for all including Iran ,to achieve its goals it requires a comprehensive infrastructural package. Implementing such policy incautiously, could be problematic. Lack of the above package in Iranian experience under recent and current government (2005-2011) is going to endanger usual and positive outcomes of subsidy policy. Considering the above concern, this paper is investigating the case in question.

 

Method: after some literature review it is based on econometric methods and it uses time series data 1974-2011 periods (by assistance of auto regression model).

 

Findings: 1-Gini coefficient and general indicators of welfare show that there is a high inequality in Iranian economy in the period of this study. 2-regarding current administration, the subsidy policy would worsen the income distribution, and in long run social welfare.

 

Conclusion: Given the current administration and due to inefficiency of basic infrastructures of policy itself, subsidy policy would worsen the income inequality, and thus from social welfare point of view, it doesn’t work in its consistent and efficient framework.

 
Mohammad Babakhani, Ramin Ghasemi , Hassan Rafiey , Hoseyn Raghfar, Akbar Biglariyan,
Volume 12, Issue 46 (10-2012)
Abstract

Introduction: The modern concept of distributive justice focuses on equitable distribution of resources and advantages in society. Besides, health as one of the social welfare sub-category is under affects of distributive justice indicators. In this study, the relationship between health and distributive justice indicators, from 1984 to 2006, has been studied.

  Method: This study is an ecological analysis. For measuring distributive justice as independent variable, income inequality, and poverty and government expenditures indicators were used and for measuring health, life expectancy and infant mortality rates were used. At the first, the data gathered from national statistic center and then by using Stata and Excel soft ware, indicators derived, and finally the associations between indicators by using SPSS software was analyzed.

  Findings: In this period the trend of poverty and income inequality indicators were declining and health indicators were rising. Correlation analysis indicated that there is relationship between distributive justice indicators and health indicators but by controlling government expenditures in partial correlation, there is no relationship between mentioned indicators. With using of bivariate regression, poverty was more explanatory than income inequality. Meanwhile, this fact revealed that government expenditures in health have most explanatory among distributive justice indicators.

  Conclusion: Taking account results of study, distributive justice indicators have a significant relationship with health indicators and in this period with increasing distributive justice indicators, health indicators have improved. Also, among the studied distributive justice indicators, government expenditures in health have the most relationship and explanatory power. So, it seems that government investment in health sector for obtaining distributive justice goal and promoting of health is necessary.


Vahid Mehrbani, Ali Nasiri Aghdam,
Volume 13, Issue 49 (7-2013)
Abstract

 

Introduction: Tax as a resource of government revenue, is one of the most important devices to redistribute income and reduce the gap between the poor and the rich. Meanwhile, direct tax, exclusively income tax, is more considered than the other taxes for its simple accessibility. The importance of taxation from person income and in different viewpoints in distributive justice has led this discussion to the identification of optimal income tax features in last four decades.

 

Method: It is tried in this paper to study the optimal income tax by adopting the Rawlsian social welfare criterion and estimate its rate in Iran by using ARDL approach for the period 1350-85.

 

Findings: The findings of this study suggest that the effective optimal income tax rate in short-term (long-term) is 3.1% (1.26%) in Iran.

 

Discussion: It is resulted that taxation by using the estimated rates on persons' income and then redistribution to all members of society leads to the maximization of social welfare in Iran.

 
Hassan Heidari, Akbar Hassanzadeh,
Volume 16, Issue 63 (3-2017)
Abstract

Introduction: Providing social justice  and eradication of poverty and deprivation by creating balance between  the distribution of income and wealth among the people of society is emphasized in the constitution. In this regard, explaining the relationship between income inequality and economic growth has been the most challenging economic issues in the recent decades and despite extensive research in this area, there are still unclear topics in this subject and empirical studies have also led to contradictory results. Some believe that there is a conflict between these two categories and  argue that the unequal distribution of income in the early stages of development of each country is essential for growth and in contrast, opponents of this theory  argue  that an increase in the  income inequality prevents economic growth. In this regard and in the present study, in addition to reviewing the theoretical foundations of the different effects of income inequality on economic growth, the level of inequality as a determinant factor of this relation  has been taken into account and a non-linear relationship between these two variables has been  specified.

Method: Using smooth transition nonlinear regression model, the effects of income inequality on Iran's GDP per capita over the period of 1391-1348 have been examined.

Findings: The link between income inequity and economic growth in Iran is nonlinear and includes  a two-regime structure,  that is the effect of income inequality on GDP per capita is negative in the first regime and positive in the second. Therefore,   a net positive or negative impact of the inequality on growth that was achieved in most studies, cannot be accepted. Additionally, an optimal rate of Gini coefficient equal to 0.3838 was estimated that maximizes GDP per capita and at levels less than this rate, an increase in GDP per capita has led to an increase inequality and vice versa.

Discussion: The role and impact of income inequality on the path to  economic growth achievement is important and economic development strategies must be based on rapid economic growth and equitable distribution of income. Considering  the results and estimating the optimal rate for the Gini coefficient, policymakers should  adopt a policy of "growth with distribution" in order to reduce income inequality and increase the share of low-income classes, particularly the middle class while   achieving the optimal rate of income inequality through redistribution leverage such as poverty eradication policies based on reducing income inequality and redistribution using targeted subsidies and taxation of high-income groups.


Jafar Yahyavi Dizaj, Yousef Mohammadzadeh, Samad Hekmati, Farid Hosain Yakobi,
Volume 18, Issue 68 (3-2018)
Abstract

  • Introduction: The occurrence of crime and the spread of criminal are causing human societies to face social, cultural and economic crises. Reducing feelings of security, undermining public confidence, expanding anti-social behaviour’s psychological pressures, etc., are the consequences of the spread of crime in a society, which a serious impediment to economic growth and development. Therefore, studying and identifying the effective factors which cause these social problems is very important in policy makers’ planning for prevention and reduction of crime in a society. Criminal incident defined as a negative social event that arise from people’s contextual circumstance. Increasing evidence suggests that economic factors may be associated with increase of crime in a society. To provide better evidence of the association between Social Harm and socioeconomic indicators, we evaluated the relation between these two conditions in this study
Method: This study aims to examine this subject through using the statistics of 77 countries (including Iran) and applying the dynamic panel data approach during 1996 - 2013 and generalized method of moments (GMM). To obtain the reliable results and a comprehensive study on this subject, robbery, homicide, and the number of prisoners as the crime indicators and inequality, unemployment, inflation and per capita GDP as the economic conditions are considered.
Findings: The results of the different models show that the economic problems like unemployment, inflation, poverty, and income inequality would increase the possibility of crime commitment by individuals significantly. Also, among the other variables affecting crime commitment, human development and governance index, education and domestic production have had a negative influence and population growth has also had a positive correlation with crime. Also the country population and globalization has also had a positive correlation with crime commitment.
Discussion: In this paper we estimate socioeconomic factors have influence on increase of crime in a society using panel data of the Selected Countries. According to the results, unemployment is the major factor in crime occurrence. Also, inflation in various ways, such as reducing the purchasing power of people, creating class divisions and conflicts, etc., cause people to commit crimes. When people of the society feel that they are in an unfair situation, act in a way that they can show themselves, and they commit a crime to achieve the right that is not foreseen to him. Lack of transparency in the economics of societies, parallel and unnecessary laws, lack of control over corruption, and the possible existence of a crime in general, can increase committing crime by a citizen of a society.
The existence of corruption in society creates a sense of injustice in the citizens and provokes people to act crime, when this phenomenon expands, committing a crime is justified in the custom. In such a situation, imposing heavy punishment can never reduce crime the training is influence development rate and can reduce criminal activity. Economically, it can be argued that an increase in the level of education increases the level of income of an individual; this increase in the level of income can be a reason to reduce the crime rate in the community.
Targeting to reduce crime in society is not possible without identifying the factors. We found that various factors such as unemployment rate, inflation rate, and Gini coefficient, and education, quality of regulation in society and corruption index are the most important factors influencing the use of dental services. The results of this study show a suitable path to officials, planners and policy makers
Khalil Heidary, Fahimeh Bahrami,
Volume 20, Issue 76 (4-2020)
Abstract

Introduction: The issue of welfare and the reduction of poverty and inequality has always been one of the concerns of policy makers in the field of Socioeconomics. As a result, external shocks such as sanctions on household welfare need serious consideration. 
Method: This paper examines the effects of unilateral US sanctions on the welfare of urban and rural households using the matrix multiplication and the calorie intake for different income groups. Then, using its results and raw data of the Households Income and Expenditure Survey, the indicators of headcount poverty rate and Gini coefficient for the period of 2002 to 2018 are calculated. Finally, the effects of sanctions on household welfare are shown based on the theory of “Pareto optimization”. 
Findings: The major findings of the study imply that after the 2010 sanctions, calorie intake had a downward shift from the first decile to the fourth decile. The trend of poverty after 2011 with the intensification of sanctions has shown an increasing pattern. Since 2013, the pattern of income inequality, under the influence of the foreign exchange market and the subsequent return of sanctions, has had a negative effect on the welfare of Iranian households.
Discussion: Achieving economic and welfare goals requires determining the target community for supportive receipts. Deregulation of the business market and convergence between policies and laws are among the most important ways to reduce the negative effects of sanctions on the welfare indicators of Iranian households.
Daryoush Zarbipour, Ali Kavand, Younes Nademi,
Volume 23, Issue 88 (5-2023)
Abstract

Introduction: Inequality of income distribution is one of the socio-economic issues of developing countries, including Iran. One of the proposed solutions to deal with this phenomenon is to reduce educational inequality. The purpose of this study is to investigate the effect of educational inequality on income inequality in the provinces of the country during the years 1380 to 1394.
Method: In this study, fifteen-year historical data of Iranian provinces were used to achieve the goal by combined method. Gini coefficient data of education and education were collected from the yearbook of the Statistics Center of Iran and Mohaghegh Calculations and other data were collected from the Program and Budget Organization of each province .Income inequality was considered as a dependent variable and the educational inequality, the share of tax revenue from GDP and per capita income without oil were considered as independent variables. The model was estimated and analyzed using the generalized torque technique and Eviews software.
Findings: The estimation of the model showed that the effect of educational inequality on income inequality is U-shaped. That is, the first interval of educational inequality had a negative and significant effect on income inequality and the second power of the first interval of educational inequality had a positive and significant effect on income inequality. Also, the first interruption of government size had a positive and significant effect on the income inequality index, and the interruption of per capita income and the interruption of the share of provincial GDP tax on income inequality of Iran's provinces was negative and statistically significant.
Discussion: Increasing educational inequality has reduced income inequality in the provinces of Iran over a period of fifteen years. The impact of educational inequality from the threshold of 0.44 onwards has been on increasing income inequality. This means that educational inequality has increased income inequality (Gini coefficient) beyond the threshold.


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