Assessing income inequality in Iran's urban regions and estimating the share of education level in creating inequality

Subject Areas : Journal of Investment Knowledge

Elnaz Omidvar ¹ , farhad ghaffari ² , Abbas Memarnejad ³ , Teymor Mohammadi ⁴

1 - PhD student , department of economic, science and research branch,Azad University,Tehran,Iran
2 - Associate professor, department of economic, science and research branch, Azad University, Tehran, Iran.
3 - Assistant professor, department of economic, science, and research branch, Azad University, Tehran, Iran.
4 - Associate professor, economic department, Allameh Tabataba'i university

Received: 2020-01-13 Accepted : 2020-02-08 Published : 2022-06-22

Keywords: Income Inequality", Education Level", MLD index", Theil Index", Human Capital,

Abstract :

This study evaluated intra and inter-regional income inequality in Iran using household cost-income data for the time period from 2007 to 2016 based on the Theil Index and Mean Logarithmic Deviation (MLD) index. It also estimated the contribution of education level to creating income inequality. The results of the study indicated that Iran faced the highest level of income inequality in 2008 compared to the whole studied period. Besides, intra-regional inequality has a major share of total inequality. The lowest income inequality index arising from the education level was found in Region 8 (Hormozgan, Sistan and Baluchestan, Kerman, and Yazd provinces) and the highest income inequality index belonged to Region 6 (Tehran, Alborz, and Qom provinces). The findings of the study also suggested that the income from the education level has a higher share in creating income inequality in provinces with a higher density of population and activities. For instance, Tehran Province with a population density of 970 persons per kilometer square and 1886 industrial workshops with 10 workers and higher has the highest share of human capital in creating income inequality. In contrast, Southern Khorasan and Sistan and Baluchestan provinces with a population density of 5 and 15 persons per kilometer square and 87 and 122 industrial workshops with 10 and more workers have the lowest share of education level contributing to income inequality.

References:

• آقایی مجید، رضاقلیزاده مهدیه ، باقری فریده(1392)" بررسی سرمایه ی انسانی بر رشد اقتصادی در استان های ایران" فصلنامه ی پژوهش و برنامه ریزی در آموزش عالی شماره ی 67


• خلخالی، علی، مهرگان، منصور، دلیری، حسن (1389). بررسی اثر ساختار آموزش بر توزیع درآمد. فصلنامه مدلسازی اقتصادی، 4 (15): 57-71


• خوشکار، آرش(1386) "اثر شاخص های اقتصادکلان بر توزیع درآمد در ایران: مطالعه بین استانی؛ مجله تحقیقات اقتصادی"، شماره 77


• دادگر، یداله و روح اله نظری" (1390) تحلیل رفاهی سیستم های یارانه ها در اقتصاد ایران؛ رفاه اجتماعی"، شماره42


• دستکار، عزت الله، کفایی، محمدعلی(1386). تأثیر آموزش رسمی بر توزیع درآمد ایران. فصلنامه پژوهش‌های اقتصادی ایران، 9(30): 53-76.


• کشاورز حداد، غلامرضا، گلی، یونس، عابدین مقانکی، محمدرضا(1393). اثر آزاد سازی تجاری بر تفاوت دستمزد زنان و مردان در ایران، فصلنامه تحقیقات اقتصادی، 49(3): 676-646.


• کریمی زهرا و براتی مجید(1396) "تعیین سطح نابرابری در استان های ایران : تحلیل شاخص چند بعدی ترکیبی" فصلنامه ی رشد وپژوهش های توسعه اقتصادی شماره 28 بهار 1396


• قارون، معصومه(1382)، تأثیر وضعیت اقتصادی- اجتماعی خانوار بر تقاضا برای آموزش عالی، فصلنامه پژوهش و برنامه ریزی در آموزش عالی، 9(4):74-43.


• Acemoglu, Daron. 2008. Introduction to Modern Economic Growth. Princeton, NJ:Princeron University Press.


• Acemoglu, Daron, Maria Angelica Bautista, Pablo Querubin, and James A. Robinson.2007."Economic and Political Ineqality in Development: The case of cundinamarca, Colombia." National Bureau of Economic Research Working Paper 13208.


• Acemoglu, Daron, and James A. Robinson.2008. "Persistence of Power, Elites, and Institutions" American Economic Review, 98(1):267-93.


• Aghion, Philippe, and Peter Howitt. 1992, "A Model of Growth through Creative Destruction." Economertrica, 60(2):323-51.


• Banerjee, Abhijit, and Lakshmi Iyer.2005. "History, Institutions, and Economic Performance: The Legacy of Colonial Land Tenure Systems In India." American Economic Areview, 95(4):1190.1213.


• Becker, G.S. (1975). Human capital: A theoretical and empirical analyses with special reference to education, New York: National Bureau of Economic Research.


• Blanden J, Gregg P. (2004). Family income and educational attainment: A review of approaches and evidence for Britain. Oxford Univ Press Oxford Review of Economic Policy, 20 (2): 245-263.


• Donkoh, S.A., Amikuzuno, J. A. (2011). The determinants of household education expenditure in Ghana, Educational Research and Reviews .6(8): 570-579.


• Kenayathulla, H. B. (2013). Household expenditures on private tutoring: emerging evidence from Malaysia. Asia Pacific Education Review. 14(7): 629–644.


• Mincer, J. (1974). Schooling, Experience and Earnings, New York: Columbia University Press.


• Qian J, smyth (2008). Private and public financing of education and regional disparities in education inputs in contemporary china, china Economic Journal, 1(3): 287-301.


• Quheng, J. X. (2014). Multivariate Tobit System Estimation Of Education Expenditure In Urban China. The Singapore Economic Review, 59(1):1-14.


• Williams R. (2010). Generalized Ordered Logit Models, Midwest Sociological Meeting, Chicago.1-6.


• Williams, R (2006). Generalized Ordered Logit/Partial Proportional Odds Model for Ordinal Dependent Variables. The Stata Journal, 6(1): 58-82.