An Analysis of Theil Inequality Index in Terms of Different Provinces in Iran

Economic inequality in Iran is affected by the existing within inequality and among all provinces in the country as a whole. The main purpose of this article is to analyze the Theil inequality index inequality within and among all provinces including urban and rural regions. In doing so، the micro 2007 household data is used. The results show that the share of the urban and rural inequality within provinces is 8% and 11%، respectively. Therefore، inequality between provinces has not considerable effect on the inequality as a whole. According to these results one may suggest to the macro province policy maker to concentrate on inequality reduction just within the provinces.