Showing 10 results for Income Inequality
Abbas Shakeri, Esfandyar Jahangard, Somayyeh Aghlami,
Volume 13, Issue 4 (1-2014)
Abstract
In the economic literature, inflation is one of the most important factors influencing income inequality. Since Iran as a developing country has frequently been facing with high and volatile inflation rates, the study of the effect of inflation on income inequality is of considerable importance. Despite the importance of the issue, the few studies that have dealt with this subject have not derived same result, so the effect of inflation on income inequality remains paradoxical. However, the economic studies in recent decades confirm the nonlinear relationship between inflation and income inequality. Inspired by these studies, we investigate the nonlinear effect of inflation on income inequality during 1971-2006. Likewise, we examine the Granger causality relationship between inflation and income inequality by using “Toda & Yamamoto” and “Error correction” procedures during 1971-2007.
Khosrow Piraei, Nafiseh Baligh,
Volume 15, Issue 3 (11-2015)
Abstract
This study examines the relationship between financial development and income inequality in Iran using bounds testing approach over the period of 1973-2010. In this study the domestic credit to private sector (% of GDP) and the ratio of liquidity to GDP are applied as proxies for financial development. The empirical results indicate that a negative and linear relationship between financial development and income inequality exists. Financial development significantly reduces income inequality in Iran. However, there is no evidence of an inverted U- shaped relation between financial development and income inequality, as suggested by Greenwood and Jovanovic (1990). The empirical findings also suggest that the enhanced institutional quality results in reduced income inequality in Iran.
Golnar Khalesi, Khosrow Piraee,
Volume 16, Issue 2 (8-2016)
Abstract
One of the fundamental problems in regional economic development is determining the ways in which government can allocate resources of society so that economic growth and income equality among provinces can be achieved simultaneously. In this study, a Vector Auto Regressive Model is estimated using seasonal data during Q1: 2000- Q4:2009. Inter-provincial income inequality is obtained with both Gini Coefficient and Theil Index. The results show that, in short run, income inequality among provinces accelerates economic growth and in long run decelerates it, however, it does not return to its initial level. Economic growth in short run accelerates income inequality among provinces, but decelerates it in long run. Robustness tests with Theil Index, confirm our primary results applying Gini Coefficient.
Dr Seyed Nezamuddin Makiyan, Mojtaba Rostami, Hanieh Ramezani,
Volume 18, Issue 3 (8-2018)
Abstract
Crime is a phenomenon studied from the perspective of sociology, psychology, law and economics. From the economic point of view, when economies face with economic problems such as inflation, unemployment, poverty, income inequality, and high necessary costs and so on, the expected rise in crimes is inevitable. Generally, robbery has a high share in economic crimes. In this study, an attempt is made to analyze the relationship between income inequality and robbery in Iran within a Bayesian model and Jeffry Prior approach. The period under study is from 1996 to 2012. The educational expenditure and inflation are used as control variables. The results indicate a positive relation between robbery and income inequality. Also, there is a negative relation between educational expenditure and robbery; however, the inflation has no significant effect on the robbery.
Dr Seyyed Ziaaddin Kiaalhoseini, Dr Nasser Elahi, Mr. Mohammad Kordalivandi,
Volume 19, Issue 1 (4-2019)
Abstract
Exacerbating income inequality and increasing crimes give rise to waste of human and financial resources of the society. However, causality direction between income inequality and crime remains a controversial issue. Applying Hsiao’s causality test for the 1984-2014 period, this study examines the direction of causality between these social problems in Iran. The crimes under study include crimes against property (embezzlement, bribery, forgery, theft and bounced checks) and violent crimes (murder, battery, duress and harassment). In addition, Gini coefficient is used as an inequality index. The optimal lag lengths are one for crimes against property and two for violent crimes, respectively. Findings indicate significant bidirectional causal relationships between income inequality and two kinds of crimes.
Dr Mohammad Ali Motafakkerazad, Dr Ahmad Assadzadeh, Mr. Mahdi Sheykhmaollayi,
Volume 19, Issue 1 (4-2019)
Abstract
Income distribution is of crucial importance for policymakers from the social justice viewpoint. In recent years, financial tools and intermediaries have been developed in the global economy. Thus, investigating the impact of financial development on the income inequality has attracted the attention of economic researchers. Financial development affects income distribution through both channels of economic growth (directly) and increasing access to financial services (indirectly). Many studies have been conducted regarding the effects of financial development on income distribution in Iran with different methods and indicators, and even contradictory results. This study analyzes the effect of financial development on income inequality using various indicators and the structural vector auto-regression (SVAR) approach. The findings confirm the direct effect of financial development on income inequality, or the inequality-narrowing hypothesis, though they have no decisive implication on the indirect effects of financial development on income inequality, or the inequality-broadening hypothesis.
Dr Yousef Eisazadeh Roshan, Dr Majid Agahaei,
Volume 19, Issue 4 (12-2019)
Abstract
This paper aims to examine the effects of access to information and communication technology (ICT) on income distribution in Iranian provinces, with an emphasis on the per capita income and education. Using economic theories, the relationship between access to ICT and income distribution was evaluated within a dynamic panel model by use of Generalized method of moments (GMM) during 2010-2015. The results indicate that access to ICT significantly reduces income inequality. In addition, education as a complement factor for ICT, strengthens the positive impact of access to ICT on reducing income inequality. This impact is greater among provinces having lower GDP per capita than nation-wide GDP per capita. Furthermore, inflation rate leads to an increase in income inequality, and government spending is not an influential factor in the proper distribution of income in the provinces of Iran.
Dr Alireza Kazerooni, Hossain Asgharpur, Sirvan Tayyebi,
Volume 20, Issue 1 (3-2020)
Abstract
Expansion, utilization and distribution of potential economic opportunities among people have important impacts on the prosperity of each country. Simon Kuznets was the first researcher who systematically examined the relationship between economic growth and income distribution based on the statistical data. According to Kuznets, income inequality will decrease by economic growth in the long term. Therefore, economists focused on economic growth in order to reduce income inequality. However, the Kuznets hypothesis was faced with a serious challenge by publication of Piketty's “Capital” in the twenty-first century. Since, according to Piketty, not only income inequality has not diminished, but also it has increased unprecedentedly in the advanced stages of economic growth and development. In this regard, the aim of this study is to investigate the Thomas Piketty's hypothesis based on the statistical evidence of Iran by using the ARDL econometric method during the period 1975-2015. The results confirm Thomas Piketty's hypothesis according to statistical evidence of Iran. In addition, the effect of non-oil GDP on income inequality is negative and significant, but the impact of oil revenues is positive and significant. War has also led to increased income inequality.
Dr Shahryar Zaroki, Dr Mohammad Abdi Seyyedkolaee, Mr. Arman Yousefi Barfurushi,
Volume 21, Issue 4 (11-2021)
Abstract
Since income inequality can affect individuals’ lives economically, socially, and environmentally, analyzing variables influencing income inequality is of great importance. Considering the fact that studies in Iran underestimate the role of the asymmetric macroeconomic instability on income inequality, this study attempts to analyze the asymmetric effect of macroeconomic instability on income inequality in Iran. To this aim, a non-linear autoregressive distributed lags model has been used over the period 1971-2018. The results indicate that in both symmetric and asymmetric models, macroeconomic instability has a direct effect on income distribution. It means that based on the asymmetric model, increases in macroeconomic instability raise the income inequality (unfavorable effect), and decreases in it reduce the income inequality (favorable effect). In terms of effect size, decreases in macroeconomic instability affect income inequality more than increases in it. In addition, in both asymmetric and symmetric models, an increase in direct tax or energy price reduces the income inequality, while an increase in indirect tax raises income inequality. Furthermore, the Kuznets hypothesis is not rejected in this study.
Mrs Maryam Rishehchi Fayyaz, Dr Mohammad Ali Falahi, Dr Mehdi Feizi,
Volume 24, Issue 3 (9-2024)
Abstract
Introduction
Inequality in income distribution and social class inequality are among the most serious challenges faced by societies. Revolutionary movements often strive to reduce inequality and establish a more just society. The social class inequality and unfair income distribution have adverse social, economic, and cultural impacts on the community. Therefore, one of the governments’ primary and essential tasks is to create equitable opportunities and address social inequalities. Therefore, it is necessary to identify the influential factors and define precise and reliable variables for measuring inequality.
Methodology
In this research, various methods for estimating the Gini coefficient are applied. This thesis will employ panel data models to investigate the effects of variables such as employment rate in the service sector, per capita income, inflation, and government expenditure on the Gini coefficient.
Results and Discussion
The final results of this study demonstrate that: first, per capita income significantly negatively impacts income inequality in the studied provinces during this period. In other words, as the per capita income of provinces increases, the level of income inequality decreases. Second, according to the findings of this research, government expenditure in each province have a positive and meaningful effect on income inequality. As government expenditure increases, income inequality will also rise. Inflation also positively and significantly impacts inequality, as increasing inflation leads to higher income inequality among provinces. Finally, employment in the service sector has a positive and significant effect on income inequality in the Iranian provinces, meaning that as the employment share in the service sector increases, income inequality will also increase.
Conclusion
Income inequality does not solely encompass economic issues, it will also extend to a wide range of social, economic, and even political matters. For this reason, achieving social justice has been one of the most complex and significant responsibilities of governments throughout history. Establishing fairness and equality in society can lead to development goals, economic growth, prosperity, increased security, and overall societal well-being. To attain a reasonable level of income equality, it is imperative first to define a suitable index for measuring the extent of inequality that is precise, measurable, and reliable. Subsequently, it is necessary to identify the key and influential factors contributing to income inequality and, ultimately, take steps to reduce income inequality."
The main objective of this research is to investigate the impact of employment in the service sector on income inequality in the provinces of Iran during the years 2011-2019. As the results have shown, throughout the study period, employment in the service sector has affected income inequality in the Iran's provinces. However, contrary to the results in most developed countries, employment in the service sector has worsened income inequality in provinces. There are multiple reasons for the results obtained. As explained in the theoretical background, a major contributing factor in developing countries like Iran is the prevalence of low-paying service jobs that attract many individuals. Many service jobs within this category do not require specialized skills or infrastructure, making them appealing to individuals seeking employment. Employing more individuals from this group in service jobs does not decrease income inequality. It may exacerbate income inequality within society.
In all economies, service sector complements other sectors and facilitates the conduct of different activities, greatly influencing the quality of outcome. If educational, health, and recreational services are not available in society, the workforce will not be efficient, and desirable productivity will not be achieved, thus affecting the economy negatively. In addition, in production sector, service institutions have the highest efficiency in adding value to goods. Service institutions can be divided into three main categories: (1) primary institutions, including research and development institutions. (2) secondarty institutions that operate in activities such as engineering, legal, and consultancy services. (3) Final institutions that play a role in activities such as packaging, sales, and advertising. Another advantage of the service sector is related to education. The more educated the workforce, the higher the productivity level will be.
The concepts mentioned above are just a few of the job advantages in service sector. Nevertheless, in most developing countries, including Iran, more attention is paid to the industrial sector. This is despite World Bank data showing that about 70-80 percent of employment in advanced countries is in service sector, and special attention is paid to that. Most fundamental discussions also revolve around employment opportunities there. Despite all the advantages and experiences of different countries, Iran has not been able to use the existing capacities in this sector effectively. Many policymakers still view the service sector as low-level jobs, brokerage, and intermediaries, which has prevented serious attention to this sector, even though the service sector includes profitable jobs and contributes significantly to the growth and development of the country. Employment in this sector can also help employment in the industrial and agricultural sectors achieve higher productivity levels.
