Identifying economic and non-economic factors affecting income inequality in developing countries is important for achieving sustainable development. The impact of economic growth and urbanization, by creating employment, developing infrastructure, and distributing benefits fairly, is of great importance in reducing income inequality. The aim of the present study is to analyze income inequality in Iran with an emphasis on economic growth and urbanization during the period 1992-2022 using the autoregressive distribution lag (ARDL) model. The index used for income inequality is the Gini coefficient index and the variables used in the study are economic growth rate, urbanization rate, inflation, oil rent, and degree of trade openness. The results show that the economic growth rate variable has a negative and significant effect on income inequality in Iran with a lag; the urbanization rate variable also has a positive and significant effect on income inequality. The findings of the study also show that oil rent has a negative and significant effect on income inequality. The results indicate that oil rent can lead to a reduction in income inequality in Iran due to economic dependence on natural resources and lack of economic diversification. According to the estimated results, the variables of inflation and the degree of openness to trade also have a positive effect on income inequality. Given the positive effect of economic growth and urbanization on income inequality, it is suggested that the government should consider policies and programs to create sustainable and equitable economic growth, facilitate employment and education opportunities, and create appropriate social infrastructure. On the other hand, implement equitable distribution policies and regional development programs to reduce income inequality in Iran and promote sustainable and equitable development at the national level.
Amiri, L., Javaheri, B., & Manochehri, S. (2025). Analysis of Iran's income inequality with emphasis on economic growth and urbanization. Public Sector Economics Studies, (), -. doi: 10.22126/pse.2025.11453.1169
MLA
Leila Amiri; Bakhtiar Javaheri; Salaheddin Manochehri. "Analysis of Iran's income inequality with emphasis on economic growth and urbanization". Public Sector Economics Studies, , , 2025, -. doi: 10.22126/pse.2025.11453.1169
HARVARD
Amiri, L., Javaheri, B., Manochehri, S. (2025). 'Analysis of Iran's income inequality with emphasis on economic growth and urbanization', Public Sector Economics Studies, (), pp. -. doi: 10.22126/pse.2025.11453.1169
VANCOUVER
Amiri, L., Javaheri, B., Manochehri, S. Analysis of Iran's income inequality with emphasis on economic growth and urbanization. Public Sector Economics Studies, 2025; (): -. doi: 10.22126/pse.2025.11453.1169
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