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

Author

Listed:
  • 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.

Suggested Citation

  • Khiabani, Nasser & Mazyaki, Ali, 2009. "Are public policies effective in alleviating family income inequality in Iran?," MPRA Paper 18278, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:18278
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    References listed on IDEAS

    as
    1. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(2), pages 465-490.
    2. 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.
    3. Francois Bourguignon & Francisco H.G. Ferreira & Nora Lustig, 2005. "The Microeconomics of Income Distribution Dynamics in East Asia and Latin America," World Bank Publications - Books, The World Bank Group, number 14844, December.
    4. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
    5. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Income Distribution; Policy Evaluation; Oaxaca-Blinder; Heckit;
    All these keywords.

    JEL classification:

    • D0 - Microeconomics - - General
    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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