The Impact of Income Inequality on the Level of Community Health and Economic Development in Iran

Faezeh Ostadi and Seyed Kamal Sadeghi ()

International Journal of Innovation in Management, Economics and Social Sciences, 2021, vol. 1, issue 2, 64-83

Abstract: Purpose Given that health is one of the categories that is directly and indirectly affected by income inequality in the country. In this study, the effect of income inequality and economic development on the level of life expectancy as a health indicator is examined. Methodology: This article is an analytical and ecological correlation type using the time series data of 2002-2019 to study the variables of Gini coefficient, per capita income, GDP and life expectancy in Iran. For this purpose, the regression test approach has been used. SPSS software was used to analyze the data. Findings: According to the results, the significant value of regression is less than 0.05, so regression is significant. The standard beta value for the Gini coefficient is negative 0.367 and the significant value is 0.005, so the Gini coefficient at the 95% confidence level has a negative and significant effect on life expectancy. The standard beta coefficient for national per capita income is 0.783 and a significant value is 0.001. Therefore, national per capita income at the 95% confidence level has a positive and significant effect on life expectancy. In the variable Gini coefficient and national per capita income, more than 81% explain the changes in life expectancy. Originality/Value: The results show that health is more affected by income inequality than any other variable. There is also a significant relationship between income inequality and health indicators and reducing inequality and increasing economic development has a positive relationship with health. In this regard, one of the key ways Achieving this is improving the components of human capital, including health. Therefore, adopting appropriate policies to improve income distribution can be effective in promoting the health of people in society and consequently in developing societies such as Iran, simultaneous attention to economic development and income distribution is the best strategy to ensure and promote health.

Keywords: Income inequality; community health; economic development; life expectancy (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:bao:ijimes:v:1:y:2021:i:2:p:64-83:id:14

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