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Are public policies effective in alleviating family income inequality in Iran?

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  • Khiabani, Nasser
  • Mazyaki, Ali

Abstract

Redistributing incomes has always been one of the main goals of Iranian policy makers, although political regimes have changed frequently between 1991 and 2004. We have applied a microsimulation using the Oaxaca-Blinder decomposition and a Heckman correction for sample selection bias to compare simulation results for a hypothetical unchanged situation with the actual policy shift observed. While we are able to identify the years in which policy shifts occurred, our results suggest that the intended redistribution goals were at most partially achieved, affecting only some occupations and being offset by changes to the level of family incomes.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18278.

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Date of creation: Sep 2009
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Handle: RePEc:pra:mprapa:18278

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Keywords: Income Distribution; Policy Evaluation; Oaxaca-Blinder; Heckit;

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  1. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, American Economic Association, vol. 90(4), pages 869-887, September.
  2. Rodrik, Dani & Alesina, Alberto, 1994. "Distributive Politics and Economic Growth," Scholarly Articles 4551798, Harvard University Department of Economics.
  3. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  4. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series, The World Bank 2587, The World Bank.
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