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Poverty, Growth, and Redistribution: a Study of Iran

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  • Ahmad Assadzadeh
  • Satya Paul

Abstract

The paper examines changes in the extent of poverty in Iran in the period 1983 to 1993. More specifically, it investigates the contributions of growth and redistribution factors to changes in poverty over this period of ten years. The analysis is based on household‐level data relating to three Household Income and Expenditures Surveys of 1983, 1988, and 1993. The study reveals that the extent of poverty in the rural sector declined slightly, whereas in the urban sector it increased significantly. Decomposition of changes in poverty into growth and redistribution components indicates that in each sector the redistribution component was positive, implying that the deterioration of income inequality contributed to the worsening of poverty. The growth component, however, affected the two sectors differently: it contributed to a reduction in poverty in rural areas and an increase in urban areas.

Suggested Citation

  • Ahmad Assadzadeh & Satya Paul, 2004. "Poverty, Growth, and Redistribution: a Study of Iran," Review of Development Economics, Wiley Blackwell, vol. 8(4), pages 640-653, November.
    • Handle: RePEc:bla:rdevec:v:8:y:2004:i:4:p:640-653
    DOI: 10.1111/j.1467-9361.2004.00258.x
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    References listed on IDEAS

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    1. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
    2. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975.
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    Cited by:

    1. Mahdi Majbouri & Sanaz Fesharaki, 2019. "Iran’s Multi-ethnic Mosaic: A 23-Year Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 831-859, October.
    2. Paul S. F. Yip & Jacky H. K. Wong & Billy Y. G. Li & Yi Zhang & Chi Leung Kwok & Meng Ni Chen, 2017. "Assessing the Impact of Population Dynamics on Poverty Measures: A Decomposition Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(2), pages 531-545, November.
    3. Vanessa Hartmann & Konstantin M. Wacker, 2023. "Poverty decompositions with counterfactual income and inequality dynamics," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1746-1768, August.
    4. Hosnieh Mahoozi, 2015. "Gender and Spatial Disparity of Multidimensional Poverty in Iran," OPHI Working Papers ophiwp095.pdf, Queen Elizabeth House, University of Oxford.
    5. Sanaz Fesharaki & Mahdi Majbouri, 2016. "Iran's multi-ethnic mosaic," WIDER Working Paper Series 117, World Institute for Development Economic Research (UNU-WIDER).
    6. World Bank Group, 2016. "Iran Economic Monitor, Fall 2016," World Bank Publications - Reports 25865, The World Bank Group.
    7. Mahoozi, Hosnieh, 2015. "Multiple dimensions of regional variation of impoverishment in Iran," Discussion Papers 70, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
    8. Mohammad Reza Farzanegan & Tim Krieger, 2018. "Oil Rents Shocks and Inequality in Iran," CESifo Working Paper Series 6876, CESifo.
    9. Ali Asadi & Gianni Betti & Francesca Gagliardi & Hossein Khoshbakht, 2018. "Multidimensional and fuzzy poverty at regional level in Iran," Department of Economics University of Siena 796, Department of Economics, University of Siena.
    10. Mohammad Reza Farzanegan & Tim Krieger, 2018. "Oil Revenues Shocks and Inequality in Iran," Working Papers 1226, Economic Research Forum, revised 18 Sep 2018.

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