Income inequality
Amin ShahbabayeAshtiani; MohammadJavad Sharifzadeh
Abstract
This study applies a static, non-behavioral microsimulation model using Iran’s Household Income and Expenditure Survey (HIES) 1402 (2023/24) to evaluate the redistributive implications of moving from schedular (source-based) income taxation to a comprehensive personal income tax (PIT) under three ...
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This study applies a static, non-behavioral microsimulation model using Iran’s Household Income and Expenditure Survey (HIES) 1402 (2023/24) to evaluate the redistributive implications of moving from schedular (source-based) income taxation to a comprehensive personal income tax (PIT) under three scenarios. Scenario 1 represents separate taxation of distinct income sources, mirroring the fragmented regime. Scenario 2 aggregates taxable income sources under the PIT framework proposed in the Direct Taxes Law Reform Bill. Scenario 3 combines the PIT with a redistributive policy that allocates the incremental revenue from integration to targeted cash transfers for households below the relative poverty line. Relative to the pre-tax baseline (Gini = 0.3677), Scenario 1 reduces inequality by 2.7 percent, lowering the Gini to 0.3576. Scenario 2 delivers a larger but still modest effect, reducing the Gini by 4.9 percent to 0.3490. In contrast, Scenario 3 yields a sizeable redistributive impact: the Gini declines by 15.9 percent to 0.3090. The results indicate that the fragmented system exhibits limited progressivity—particularly at the top of the distribution—and that tax-base integration alone is unlikely to generate substantial redistribution. Meaningful inequality reduction requires complementary reforms, including a more progressive design of deductions and exemptions within the PIT, targeted allocation of incremental revenues to anti-poverty transfers, and strengthened data transparency and enforcement to expand coverage of informal and underreported incomes.
Income inequality
Zahra Sadeghi Motamed; abolfazl shahabadi; hamid kordbacheh
Abstract
In the contemporary era, knowledge is recognized as a source of wealth for societies, and the role of new production factors in the production function is highly significant. The core of these new production factors is human beings; therefore, inequality can disrupt the process of economic growth and ...
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In the contemporary era, knowledge is recognized as a source of wealth for societies, and the role of new production factors in the production function is highly significant. The core of these new production factors is human beings; therefore, inequality can disrupt the process of economic growth and development by affecting individuals' motivation through these new production factors. Additionally, inequality has always been a key factor in development indicators. Thus, studying the determinants of income inequality is essential. In this regard, the present study uses a Dynamic Panel Data (DPD) model and the Generalized Method of Moments (GMM) approach to analyze the interactive effects of globalization and natural resource rents on income inequality in a selected group of countries from 2008 to 2020.The results indicate that the interaction between globalization and natural resource rents has a positive and significant effect on income inequality. It is suggested that by adopting a strategy of converting natural resources into sustainable and productive capital, while strengthening the economic structure for effective participation in the global economy, a stable income stream can be created to finance supportive policies.Furthermore, the findings show that gender inequality has a positive and significant impact on income inequality, while democracy has a negative and significant effect on income inequality. However, the impact of institutions on income inequality is negative but insignificant.
Income inequality
Mehdi zahed gharavi; Meisam Haddad; fatemeh sadeghpour; Mohammad Reza Mohammadi
Abstract
Income distribution inequality is one of the challenges and problems of every economy. If the inequality of income distribution increases sharply, social discontent will be fueled and the risk of social and political unrest will increase sharply. Considering the importance of the relationship between ...
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Income distribution inequality is one of the challenges and problems of every economy. If the inequality of income distribution increases sharply, social discontent will be fueled and the risk of social and political unrest will increase sharply. Considering the importance of the relationship between economic growth and inequality of income distribution and the possibility of differences in this relationship in different countries, this research examines the relationship between economic growth and inequality of income distribution in developed and developing countries and transition economies with the Panel data method reviewed in the period from 2003 to 2019. The findings of the research indicate that in developed countries the Kuznets U-shaped inverted curve has not been confirmed, but it has been confirmed in developing countries. Also, in transitioning economies, the relationship between economic growth and income distribution inequality is not secondary, but linear and inverse. The results of this study can be used in planning and making decisions for the distribution of income among different countries based on the degree of development and forecasting their economic growth.
Income inequality
Ali Sarkhosh Sara; Khadije Nasrollahi; Karim Azarbaiejani; Rasoul Bakhsi Dastjerdi
Abstract
Reduction of inequality and social justice by balancing the distribution of income and wealth is one of the concerns of economic policy makers and has been underlined by the constitution law in Iran. In the meantime, the explanation of the relationship between inequality and the factors affecting it ...
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Reduction of inequality and social justice by balancing the distribution of income and wealth is one of the concerns of economic policy makers and has been underlined by the constitution law in Iran. In the meantime, the explanation of the relationship between inequality and the factors affecting it has been a challenging area of economic debate in recent decades, and despite extensive research in this area, there are still many ambiguous issues in this regard. In this regard, in recent years, a new hypothesis has been presented by the French economist Thomas Piketty. In his analysis, Piketty's main factor of inequality is the gap between the rate of return on capital and the economic growth rate (r-g). But, despite offering logical explanations consistent with changes in the patterns of inequality, no empirical test has been done for the scientific-theoretical chain. Therefore, the question arises as to how much Piketty's hypothesis is empirically convincing and capable of explaining the rise of inequality for different countries? For this purpose, this paper, using the Structural Vector Autoregressive pattern (SVAR), analyzes the factors affecting income inequality in Iran within the framework of Thomas Piketty's perspective during the period of 1973-2016. The results of this study showed that the increase of gap (r-g) has no positive and significant relationship with the increase of inequality and share of capital from national income in Iran and there is no evidence to confirm Piketty's hypothesis in Iran.
Income inequality
Maysam Rafeei; Mohamad Sayadi
Abstract
The main objective of this study was to investigate the short-term and long-term relationship between state fiscal policy (changes in capital and current expenditure) and social welfare. To this purpose, variables such as GDP, the Gini coefficient, the current and capital expenditures of government and ...
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The main objective of this study was to investigate the short-term and long-term relationship between state fiscal policy (changes in capital and current expenditure) and social welfare. To this purpose, variables such as GDP, the Gini coefficient, the current and capital expenditures of government and social-welfare which have been achieved by converting the homogeneous Amartya Sen, are considered for the period 1971-2014.The result of Bound ARDL testing approach (has been extended by Pesaran and colleagues 2001), shows that although there is a direct relation between capital and current expenditure and social welfare in short-term, the social welfare has inverse relation with current expenditures and economic growth. The result also indicates a direct relation between social welfare and capital expenditure in long-term. These findings are consistent with the stylized facts of fiscal policy in Iran, including government capital expenditure budget failure to meet development goals and bring prosperity due to the fluctuations of the construction budget, delay in construction projects, incorrect selection of projects. Other results revealed that social welfare variable responses to short- term fluctuations in capital and current expenditure and economic growth and to distortion from long term equilibrium trends in the previous period of social welfare.
Income inequality
Sohrab Delangizan; Younes Goli; Yahya Goli
Volume 7, Issue 28 , September 2017, , Pages 83-98
Abstract
Growth inequalities are one of the important issues of urban and regional economies. The present study focuses on the Theil inequality index and regional statistics data of Iran during the years 2005 to 2013. This study measures the inequality and examines the effects of industrialization on it. In this ...
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Growth inequalities are one of the important issues of urban and regional economies. The present study focuses on the Theil inequality index and regional statistics data of Iran during the years 2005 to 2013. This study measures the inequality and examines the effects of industrialization on it. In this study, spatial econometrics has been used. Theil inequality index analysis shows that the major share of growth inequality between regions is due to the neighborhood effects between provinces and the difference in productivity. The results show that economic growth of the provinces is convergent and industrialization in a particular province causes a divergence of economic growth. The effects of overflow lead to convergence of economic growth in the provinces. Therefore, increasing investment in less developed regions can lead to convergence of economic growth in the provinces.
Income inequality
Mirnaser Mirbagheri Hir; siyamak shokohifard
Volume 7, Issue 25 , November 2016, , Pages 97-112
Abstract
The aim of this study is to evaluate the effect of financial development on income inequality and poverty in selected Islamic countries. The selected countries include: Iran, Indonesia, Jordan, Kuwait, Malaysia, Egypt, Morocco, Oman, Saudi Arabia, Senegal, Turkey, the United Arab Emirates, Qatar and ...
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The aim of this study is to evaluate the effect of financial development on income inequality and poverty in selected Islamic countries. The selected countries include: Iran, Indonesia, Jordan, Kuwait, Malaysia, Egypt, Morocco, Oman, Saudi Arabia, Senegal, Turkey, the United Arab Emirates, Qatar and Libya. This study used the combined data methods to test the research hypotheses during the period 2000-2014. According to survey results, the coefficient of financial development in the Gini coefficient equation (-0.068) shows that financial sector development in Islamic countries has reduced income inequality. The effect of financial development on poverty is positive and significant at 5% level. Based on these results a percentage increase in the index of financial development, will lead to increased consumption per capita cost at 0.4 percent and reduce poverty in Islamic countries.
Income inequality
Reza Akbarian; Mahsa Famkar
Volume 1, Issue 1 , January 2012, , Pages 185-161
Abstract
This paper examines the association of income inequality and economic growth with public expenditures on education as an intermediary factor in Iran. Time series data from 1974-2005 and two stage least squares (2sls) method are used to estimate a simultaneous equation system. Public expenditures on education ...
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This paper examines the association of income inequality and economic growth with public expenditures on education as an intermediary factor in Iran. Time series data from 1974-2005 and two stage least squares (2sls) method are used to estimate a simultaneous equation system. Public expenditures on education and economic growth are dependent variables and population density, human capital, past public expenditures on education and income inequality are considered as explanatory variables in the model. The results are as follows: 1-There is a negative association between income inequality and economic growth with or without public expenditures on education as an intermediary factor. 2-Public expenditures on education are negatively associated with economic growth. 3-Although the sign of past public expenditures on education with public expenditures as an intermediary factor is positive, but the coefficient of past public expenditures on education is not significant in the growth rate equation. So a judgement can not be made about its relationship with economic growth.
