Income Distribution investigation in Iran using Gini Coefficient and Atkinson Index: 2001- 2013

The subject of this article is to assess Personal Income Distribution in I. R. Iran both in rural and urban areas using Gini coefficient and Atkinson index in the period of 2001- 2013. These two indices satisfy Dalton principles (principles about requirements of a good income distribution index) and comparing to other income distribution indices are more precise. Although Gini coefficient is the most common measure of income inequality، since it is highly sensitive to inequalities in the middle of the income spectrum، it may not be able to distinguish between two different income distributions. But the Atkinson index considering social welfare function into the measurement of income inequality allows for varying sensitivity to inequalities in different levels of the income distribution and it can be a complement to Gini coefficient. Results based on Gini and Atkinson show decreasing income inequality during the investigated period both in rural and urban areas. Income inequality in urban areas is less than rural areas and considering different income levels، the income inequality rises in both areas as the level of income increases. Since the year 2010، income inequality has been decreasing in both areas and there was a more sensible decrease in 2011 which could be due to performing the subsidy reform program and a payment of 455000 Rials per person to Iranian families since December 2010 (as Dalton''s third principle of equal payments suggests)