Document Type : Research Paper
Authors
1 ----------------
2 Professor of Econometrics and Social Statistics, Department of Economics, Semnan University, Semnan-Iran
Abstract
Education, as a key indicator of human development, plays a decisive role in reducing social and economic inequalities. Unequal access to education exacerbates income disparities. The primary objective of this research is to examine the impact of different educational levels on income distribution inequality in Iran, using data from the Household Expenditure (Income) Survey (HIES) from 1984 to 2023. In this study, households were categorized based on the educational attainment of the head of the household. Subsequently, the Gini coefficient of income was calculated separately for each educational level. The effect of educational inequality (measured as the standard deviation of educational expenditures) on income inequality within each educational category was examined using an econometric panel ARDL model. Control variables, including mean household expenditures and the unemployment rate within each educational group, were also incorporated. The results indicate that inequality in access to education, as well as the unemployment rate, both significantly and positively intensify income inequality. Conversely, the mean household expenditure within each educational period had a significant mitigating effect on income inequality. Furthermore, the findings reveal that educational inequality in Iran has followed an increasing trend over time, reaching its highest level in recent years. Based on the results of this study, it is recommended that the government adopt appropriate policies to reduce educational inequality and enhance access to higher education for all members of society, particularly low-income groups.
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