An Empirical Test of the Impact of Insurance on Income Inequality in Iran (in Persian)

Amir Mansour Tehranchian (), Shahryar Zaroki () and Nava Imani
Additional contact information
Amir Mansour Tehranchian: Associate Professor, Department of Economics, Faculty of Economic and Administration Sciences, University of Mazandaran, Babolsar, Iran,
Shahryar Zaroki: Associate Professor, Department of Economics,University of Mazandaran
Nava Imani: M.A. in Economics, Allameh Mohaddes Nouri University, Nur, Iran.

The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی و بودجه), 2019, vol. 24, issue 3, 35-60

Abstract: 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. (search for similar items in EconPapers)
JEL-codes: D31 E21 G22 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://jpbud.ir/article-1-1865-en.pdf (application/pdf)
http://jpbud.ir/article-1-1865-en.html (text/html)
http://jpbud.ir/article-1-1865-fa.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:auv:jipbud:v:24:y:2019:i:3:p:35-60

Access Statistics for this article

More articles in The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی و بودجه) from Institute for Management and Planning studies Contact information at EDIRC.
Bibliographic data for series maintained by Nahid Jebeli ( this e-mail address is bad, please contact ).