Ali Mazyaki; Solaleh Tavassoli; Mitra Babapour; Meysam Mazaheri; Anahita Hosseini; Mina Javid; Sahand Gharizadeh
Abstract
Although the importance of considering the capability approach in calculating poverty has been addressed in various studies, a major obstacle to achieving a measure like Alkire-Foster MPI in many countries is the lack of integrated micro indicators. In this study, we suggest a "repeated and random ...
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Although the importance of considering the capability approach in calculating poverty has been addressed in various studies, a major obstacle to achieving a measure like Alkire-Foster MPI in many countries is the lack of integrated micro indicators. In this study, we suggest a "repeated and random data generation" method using the macro amount of the missing indicator. Moreover, we apply this method to calculate and break down the acute poverty measure of Alkier and Foster in Iran. The results indicate that by using this method, we are able to achieve the desired level with very high precision. In addition, by breaking down multidimensional poverty into three dimensions of health, education, and standard of living, we show that during the last four decades, the share of educational deprivation in MPI is always increasing and has transformed into the most effective indicator in acute multidimensional poverty. Finally, by examining the characteristics of poor households, it can be noted that households with acute poverty have gradually become older, smaller, and less educated. Therefore, it seems that programs like subsidies to the entire society are no longer helpful for poverty reduction in Iran and it can be improved by better targeting and addressing educational deprivation.
Ali Mazyaki
Abstract
In 2010, an extensive program of cutting subsidies was implemented in Iran; and at the same time, a cash subsidy was redistributed to vast majority of country population. One announced goal of this plan was to improve income distribution. In this study, we evaluate the effects of targeted ...
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In 2010, an extensive program of cutting subsidies was implemented in Iran; and at the same time, a cash subsidy was redistributed to vast majority of country population. One announced goal of this plan was to improve income distribution. In this study, we evaluate the effects of targeted subsidy program on income distribution. This is important because the program is to be continuing and studies such as this one may be useful for identifying possible issues to avoid future drawbacks. To achieve this, using the data of "Household Income and Expenditure Survey" by Statistical Center of Iran, we run an Oxaca-Blinder micro-simulation model during the years before and after the implementation of the first phase of this policy. In this model, mitigations are provided for sampling error, differences in regional price index and the coexistence of sanctions. Based on our results, while distribution of expenditures is sharply more equal after 2010, the simulated purchasing powers are not so; moreover, more equitable distribution of expenditures is mostly because of losing opportunities.
