Volume 24, Issue 3 (Autumn 2019)
JEPR 2019, 24(3): 35-60 |
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Tehranchian A M, Zaroki S, Imani N. (2019). An Empirical Test of the Impact of Insurance on Income Inequality in Iran. JEPR. 24(3), 35-60. doi:10.29252/jpbud.24.3.35
URL: http://jpbud.ir/article-1-1865-en.html
URL: http://jpbud.ir/article-1-1865-en.html
1- Associate Professor, Department of Economics, Faculty of Economic and Administration Sciences, University of Mazandaran, Babolsar, Iran, , M.tehranchian@umz.ac.ir
2- Associate Professor, Department of Economics,University of Mazandaran
3- M.A. in Economics, Allameh Mohaddes Nouri University, Nūr, Iran.
2- Associate Professor, Department of Economics,University of Mazandaran
3- M.A. in Economics, Allameh Mohaddes Nouri University, Nūr, Iran.
Abstract: (5187 Views)
Emphasis on eliminating deprivation and poverty on the one hand and expanding insurance services on the other, confirms the fact that the concept of insurance has a key role for economic planners and policymakers in achieving the goal of reducing income inequality. The efforts made in the present study are aimed at improving the position of insurance in this field. In this regard, the impact of the insurance penetration coefficient on income inequality in 30 provinces of Iran during 2011-2015 has been calculated using the dynamic panel data in a basic model and two scenarios (based on human development index and insurance penetration coefficient). The results show that inflation has a positive effect on the Gini coefficient and consequently increases income inequality. However, per capita income index and insurance penetration coefficient have a negative effect on the Gini coefficient and lead to a decrease in income inequality. Furthermore, the effect of this factor on the Gini coefficient in provinces varies depending on the level of human development and insurance penetration coefficient level. So first, there is a significant difference in the extent of the influence of insurance penetration coefficient on the Gini coefficient in two groups of provinces in terms of human development level, so that an increase in the level of human development reinforces the effect of the insurance penetration coefficient on reducing income inequality. Second, there is a significant difference in the magnitude of the impact of insurance penetration coefficient on the Gini coefficient in the two groups of provinces in terms of insurance penetration coefficient level; Thus, by increasing the size of the insurance penetration coefficient, the influence of the insurance penetration coefficient on reducing income inequality is strengthened.
Keywords: Income Distribution, Insurance Penetration Coefficient, Panel Data, Per Capita Income, Human Development Index, Iran.
Type of Study: Research |
Subject:
public economics
Received: Jan 17 2020 | Accepted: May 31 2020 | ePublished: Sep 14 2020
Received: Jan 17 2020 | Accepted: May 31 2020 | ePublished: Sep 14 2020
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