Volume 23, Issue 88 (5-2023)                   refahj 2023, 23(88): 271-302 | Back to browse issues page


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zarbipour D, kavand A, nademi Y. (2023). Investigating The Effect of Education Inequality on Inequality of Income Distribution in Iran’s Provinces. refahj. 23(88), 271-302. doi:10.32598/refahj.23.88.3946.1
URL: http://refahj.uswr.ac.ir/article-1-3926-en.html
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Introduction: Justice in the distribution of educational opportunities increases the efficiency, effectiveness and creativity of individuals, so unbalanced access to educational opportunities can lead to increasing inequality. Severe income distribution inequality is one of the socio-economic issues of developing countries, including Iran. One of the proposed strategies to deal with this phenomenon is to reduce educational inequality. The quality and extent of access to education largely depends on where people live and how much they earn. People with high income levels in both rural and urban areas have had much better opportunities to reach higher levels of education and training (Karimi Moghari, Mehrdad, & Elmi, 1396). However, human capital is affected by family status, which will result in educational inequality and related income inequality. Given that even if the best conditions in educational services are made available to the public, the quality of these services will vary between class levels of society, due to which, the possibility of equal opportunity for growth and promotion of human capital, for people who have the opportunity of quality educational facilities (compared to people who have experienced high levels of educational services), if not impossible, seems far-fetched.
Method: The present study is an applied research in terms of purpose and retrospective in terms of research method. And, it is analytical-inferential in terms of research method and nature and method of dealing with the problem. In this study, information and data available in the Statistics Center of Iran (regional and provincial indicators), the Ministry of Economic Affairs and Finance and the Provincial Planning and Budget Organization, have been cited and used by modeling Excel and Eviews agents. There are advantages to using panel data that sets it apart from other methods. Panel data has more information, more variability, less alignment, higher degree of freedom and higher efficiency than time series and cross-sectional data. In particular, one of the ways to reduce alignment is to combine cross-sectional and temporal data in the form of panels. In this regard, the main purpose of this article is to investigate the impact of educational inequality on income distribution inequality in the provinces of Iran over a period of 15 years. Data modeling and statistical information in this study are based on two-dimensional models (panels) and the effects of educational inequality, provincial government size, tax revenue to provincial GDP ratio and per capita oil-free income in Iranian provinces on income distribution inequality using the Gini coefficient index, during the years 1380 to 1394, using generalized torque estimators (GMM) has been estimated. Also, for the income distribution inequality index, the Gini coefficient of income and for the educational inequality index, the Gini coefficient of education based on the calculations of Thomas, Wang, and Fan (2001).were considered.
Findings: The results of model 1 estimation according to Table 1 showed that the effect of educational inequality on income inequality is U-shaped. In other words, during the study period in the studied provinces, with the increase of educational inequality from the threshold value of 0.44, income inequality has increased. Also, the results of model estimation regarding control variables showed that 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 provincial tax on GDP inequality were negative and statistically significant.
Estimated model; therefore, according to the stated models and the purpose of the research, Model 1 was specified and estimated as follows؛
Giniit=β0+β1 Gini it-1+β2 Eduineq it-1+β3 Eduineq2 it-1+β4 Income it-1+β5 TaxGdpit-1+β6 GS it-1+eit
where in:Giniit, Gini coefficient of income , Edineq it-1: Educational inequality with a break period, Eduineq2 it-1: The second power of educational inequality with a break period, Income it-1: Oil-free per capita income with a break, TaxGdp it-1: The ratio of tax revenues to GDP with a break period, GS it-1: State size with a pause period , ، βi: Show pattern parameters, i: Markr of provinces, t: time and εit : It is a disturbance

 
Table (1) Research model estimation results: Gini coefficient dependent variable
Explanatory variable name symbol Estimated coefficient Standard deviation Statistics
t
p
The first break income inequality Gini (-1) 1766/ 0 0594/ 0 9709 / 2 0032 / 0
The first interruption of the tax share to GDP TaxGdp(-1) 0052/ 0- 0017/ 0 0432 / 3 0025 / 0
The first interruption of educational inequality Eduineq(-1) 7262/ 3- 3540 / 1 7518 / 2- 0158/ 0
The second power of the first interval of the square of educational inequality (-1) 2076/ 4 7342 / 1 4261/ 2 0158/ 0 Eduineq 2
Income Income(-1) -7 / -8 958810/ 5- 0000/ 0 -5/ 89 × 10 9/ 89× 10
The first interruption of government size GS(-1) 123866/ 0 022492/ 0 507065/ 5 0000/ 0


Source: Research Findings
Discussion: According to the results of the study, since educational inequality increases income inequality beyond the threshold, it is recommended that the government provide the necessary policies to reduce educational inequality. One of these strategies could be to create equal educational opportunities in low-income areas of the country, as well as to create educational opportunities for all children across the country. Also, considering the positive effect of government size on inequality of income distribution in the provinces of Iran, income distribution, it is recommended that the privatization process be carried out efficiently according to continuous studies and pursuit of economists and in terms of economic theories, to reduce the government’s share in society and the increase in the efficiency of the private sector, followed by an increase in economic growth, and an increase in government taxes, will improve the redistribution of income, thus reducing income inequality. Due to the negative impact of taxes on income inequality, it is recommended to take the necessary measures to reduce tax evasion and thus increase taxes optimally. Also, considering the positive effect of per capita income on reducing income inequality, it is recommended that policymakers increase per capita income by adopting appropriate monetary and fiscal policies.

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Conflicts of interest
In the present study, the authors showed no conflict of interest.
Acknowledgments:
In this article, in addition to observing the principles of professional conduct, all
rights related to the sources cited are respected and the references are carefully
cited
 
Type of Study: orginal |
Received: 2021/07/11 | Accepted: 2022/09/26 | Published: 2023/05/9

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