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Is income inequality reflected in consumption inequality in Iran?

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  • Hamid Noghanibehambari
  • Masha Rahnamamoghadam

Abstract

This paper presents a descriptive analysis of the evolution of labor supply, income, and consumption inequality in Iran using the 2005–2015 waves of the survey of Household Expenditure and Income (HIES). We document that the sharp decline in income and consumption inequality after the Subsidy Reform in 2010 was accompanied by a slight but persistent rise in respective inequality measures. We find that not only the level of income inequality is higher than consumption inequality but also that the fluctuations in income inequality are larger than those of consumption inequality. Moreover, income and consumption inequalities among rural households are higher compared to urban families. Finally, we show that within-group inequality, the inequality due to circumstances, can explain a considerable portion of the divergence observed between income and consumption inequalities.

Suggested Citation

  • Hamid Noghanibehambari & Masha Rahnamamoghadam, 2020. "Is income inequality reflected in consumption inequality in Iran?," Middle East Development Journal, Taylor & Francis Journals, vol. 12(2), pages 284-303, July.
    • Handle: RePEc:taf:rmdjxx:v:12:y:2020:i:2:p:284-303
    DOI: 10.1080/17938120.2020.1770488
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    Cited by:

    1. Ghaninejad, Mousa, 2020. "عرضه، تقاضا، و پیشنهاد قیمت در بازار برق ایران [Supply, Demand, and Bidding in Iran’s Electricity Market]," MPRA Paper 105340, University Library of Munich, Germany.
    2. Bibak, Baran, 2019. "انرژی‌های تجدیدپذیر در بازار برق ایران [Renewable energy in Iran’s electricity market]," MPRA Paper 105489, University Library of Munich, Germany.
    3. Bubak, Baran, 2020. "تخمین نرخ بهینه عوارض تراکم برای آزادراه‏های ایران با استفاده از مدل قیمت‏گذاری ارزش [Estimation of Optimal Rate for Compact Tariffs in Highways across Iran applying the Value Pricing Methodology]," MPRA Paper 105490, University Library of Munich, Germany.
    4. Nahid Tavassoli, 2021. "The Gender-Biased Fertility Behavior: Evidence from Southeast Asian Countries," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 235-261, July.

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