The effect of education on the of income inequality distribution in Lorestan province

Document Type : Original Article

Authors

1 Econo,ic

2 Economic

Abstract

One of the Economic Goals of Governments is to Reduce the Inequality of Income Distribution. Therefore, knowing the factors and variables influencing the inequality of continuous income distribution has been desired by economic policy makers. The purpose of this research is to investigate the effect of education on the inequality of income distribution in Lorestan province during the period of 1986-2019 by using the model Auto Regressive distributed Lag. In this research, the number of secondary and higher education graduates and the number of technical and professional institutes have been selected as indicators of education. Based on the results obtained, the number of secondary and higher education graduates has had a negative and significant impact on the inequality of income distribution with its second break. The number of skilled workers in technical and professional institutions in the current time along with its second break has a significant negative relationship with the dependent variable. Also, the variables of current unemployment, current gross domestic product and inflation in their first and second intervals have a negative and significant relationship on the inequality of income distribution. As these results show that with the increase in the number of graduates of technical and professional institutions, assuming that other explanatory variables remain constant, it can be expected that the inequality of income distribution will decrease in the short term. In the long term, the number of secondary and higher education graduates and the number of technical and professional institutes, unemployment, inflation and gross domestic product have had a negative impact on the inequality of income distribution. Therefore, it is recommended that technical and professional institutes increase the recruitment of trainees by expanding various applied courses and fields, more affordable tuition fees.

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