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.

Keywords

Main Subjects

References

Alcántar-Toledo, J. & Venieris, Y. P. (2014). “Fiscal Policy: Growth, Income Distribution and Sociopolitical Instability”. European Journal of Political Economy, 34, 315-331. https://doi.org/10.1016/j.ejpoleco.2014.03.002
Ansari samani, H. & Khilkordi, R. (2019). “Unemployment and Income Inequality in Iran Provinces”. Iranian Journal of Economic Research, 24(81), 157-186. doi: 10.22054/ijer.2019.11689
Asayesh, H.; Mostafapour, Y. & Shamsollahi, R. (2023). “Investigating the Impact of Various Factors on Inflation in Iran with an emphasis on the Covid-19 Pandemic”. Economic Policies and Research, 2(1), 95-121. doi: 10.22034/jepr.2023.62838,[ in Persian].
Baliamoune–Lutz, M. & McGillivray, M. (2015). “The Impact of Gender Inequality in Education on Income in Africa and the Middle East”. Economic Modelling, 47, 1-11. https://doi.org/10.1016/j.econmod.2014.11.031
Becker, G. S. & Chiswick, B. R. (1966). “Education and the Distribution of Earnings”. The American Economic Review, 56(1/2), 358-369. https://www.jstor.org/stable/1821299
Feizi, M.; Beirzanvand, M. & Malekosadati, S. (2021). “Effect of Unemployment, Inflation and Minimum Wage on Income Inequality in Rural Areas of Iranian Provinces”. Quarterly Journal of the Macro and Strategic Policies, 8, 30-45. doi: 10.30507/jmsp.2020.102779
Gewirtz, S. (2017). Rethinking education and poverty. British Journal of Sociology of Education, 38(7), 1081-8.
Gholami, M.; Emadzade, M. & Ranjbar, H. (2015). Social Analysis of Order and Social Inequality”. 7(2), 157-178. [In Persian].
Gibson, J., & Rioja, F. (2014). A bridge to equality: How investing in infrastructure affects the distribution of wealth. Georgia state university
Gregorini, F. (2015). Political geography and income inequalities, Research in Economics, 69(3), 439-452. https://doi.org/10.1016/j.rie.2015.06.001
Grossman, G. M. & Helpman, E. (1991). “Trade, Knowledge Spillovers, and Growth”. European Economic Review, 35(2–3), 517-526. https://doi.org/10.1016/0014-2921(91)90153-A
Hooper, E., Peters, S., & Pintus, P. (2017). “To what extent can long-term investment in infrastructure reduce inequality?” Working Paper, Directorate- general for international studies and relation.
Jagielski, M., Duczmal, R. and Kutner, R. (2015). Income distribution in the European Unionversus in the United States, Physica A: Statistical Mechanics and its Applications, 433(1),36-41
Kafaei, M. A. & Dorostkar, E. (2007). “Formal Education and Income Distribution”. Iranian Journal of Economic Research, 9(30), 53-76. https://ijer.atu.ac.ir/article_3648.html?lang=en
Keller, K. R. (2010). How can education policy improve income distribution? An empirical analysis of education stages and measures on income inequality. The Journal of Developing Areas, 51-77.
Mallaye, D.; Tatiana Timba, G. & Thierry Yogo, T. (2015). “Oil Rent and Income Inequality in Developing Economies: Are They Friends or Foes?” CERDI Working papers, 201502. https://ideas.repec.org/p/hal/cdiwps/halshs-01100843.html
Merhabani, V. (2008). The Effect of Education on Poverty and Income Inequality. Journal of Economic Research (Tahghighat- E- Eghtesadi), 43(1), -1-22.[In Persion].
Mostfapor, Y., Shamsolahi, R., & Asayesh, H. (2023). Goods and services tax on inflation in the Iranian economy. Public Sector Economics Studies, 2(3), 293-312. doi: 10.22126/pse.2023.9600.1057.
Mostolizadeh, M,. farahati, M., & salimi, L. (2023). The effect of economic complexity and shadow economy on income inequality in countries of the Organization for Economic Cooperation and Development (OECD). Public Sector Economics Studies, 2(3), 335-352. doi: 10.22126/pse.2024.9882.1067.
Nkoro, E. & Uko, A. K. (2016). “Autoregressive Distributed Lag (ARDL) Cointegration Technique Application and Interpretation”. Journal of Statistical and Econometric Methods, 5, 63-91. https://ideas.repec.org/a/spt/stecon/v5y2016i4f5_4_3.html
Pan, D., (2014). The effect of education on adult mortality and health: Evidence from Britain. American Economic Review, 103(6), 2087-2120.
https://doi.org/10.1016/j.jdeveco.2014.07.013.
Paweenawat, S. & McNown, R. (2014). “The Determinants of Income Inequality in Thailand: A Synthetic Cohort Analysis”. Journal of Asian Economics, 31-32, 10-21. https://doi.org/10.1016/j.asieco.2014.02.001
Pesaran, M. H.; Shin, Y. & Smith, R. J. (2001). “Bounds Testing Approaches to the Analysis of Level Relationships”. Journal of Applied Econometrics, 16(3), 289-326. https://www.jstor.org/stable/2678547
Romer, P. M. (1990). “Human Capital and Growth: Theory and Evidence”. Carnegie-Rochester Conference Series on Public Policy, 32, 251-286. https://doi.org/10.1016/0167-2231(90)90028-J
Sarwar, G.; Sial, M. H. & Hassan, N. (2016). “Investment in Education and Income Inequality: Testing Inverted U-Shaped Hypothesis for Pakistan”. Pakistan Journal of Social Sciences, 36(2), 751-760. https://pjss.bzu.edu.pk/index.php/pjss/article/view/460
Shamsolahi, R., Zahedgharavi, M., & asayesh, H. (2022). The Effect of of Income Distribution Inequality on Government Education Expenditure in Iran's Economy: New Evidence from an ARDL Approach. Stable Economy Journal, 2(4), 136-157. doi: 10.22111/sedj.2022.40438.1160.[In Persion].
Snowdon, B. & Howard, W. (2012). Modern Macroeconomics: Its Origins, Development and Current State. Translated by Khalili eraghi, M. & Souri, A., Tehran: Samt Pub. [In Persian].
Soucek, R.; Göritz, A. S. & Moser, K. (2017). “Does it pay off to complete a Doctorate? The Moderating Role of Employment Status”. Zeitschrift für Arbeits- und Organisationspsychologie, 61(2), 93-100. https://doi.org/10.1026/0932-4089/a000238
Taheri, M. A., & Khodabakhshi, A. (2021). Interactive Effect of Education Indicators and Income Distribution in Selected Countries of the Islamic Conference Organization. Program and Development Research, 2(1), 55-80. doi: 10.22034/pbr.2021.129154.[In Persion].
Tchamyou, V. S.; Asongu, S, A. & Odhiambo, N, M. (2019). “The Role of ICT in Modulating the Effect of Education and Lifelong Learning on Income Inequality and Economic Growth in Africa”. African Development Review, African Development Bank, 31(3), 261-274. https://doi.org/10.1111/1467-8268.12388
Topuz, S. G. (2022). The Relationship Between Income Inequality and Economic Growth: Are Transmission Channels Effective?. Social Indicators Research, 162(3), 1177-1231. https://doi.org/10.1007/s11205-022-02882-0
Yang, J. & Qiu, M. (2016). “The Impact of Education on Income Inequality and Intergenerational Mobility”. China Economic Review, 37(C), 110-125. https://doi.org/10.1016/j.chieco.2015.12.009
Zaroki, Sh.; Taghinezhad omran, V. & Mahmoodi alami, A. (2022). “The Dual Effect of Inflation on Income Inequality in Iran; Emphasizing the Total Basket and Commodity Groups”. Journal of Planning and Budgeting, 27(1), 95-125. http://dx.doi.org/10.52547/jpbud.27.1.95
Zheng, D. & Kuroda, T. (2013). “The Role of Public Infrastructure in China's Regional Inequality and Growth: A Simultaneous Equations Approach”. The Developing Economics, 51(1), 79-109. https://doi.org/10.1111/deve.12003
Public Sector Economics Studies
Volume 3, Issue 1
April 2024
Pages 93-116

Files

History

  • Receive Date: 08 December 2023
  • Revise Date: 25 February 2024
  • Accept Date: 27 February 2024

Share

How to cite

Statistics