Formal Education and Income Distribution

Spreading justice has been one of the goals of establishing the Islamic Republic of Iran and improving income distribution is an important aspect of it. Income distribution in any society is usually affected by its social and economic structures and especially by factors such as inflation, and unemployment rates and its the government size. In addition, the level of literacy and eIn addition, we can also name some other factors like education, which is considered as a steady state solution to the income distribution problem are also seen as important factors affecting the income gap among different groups.. The purpose of this article is to study the relationship between educational variables, measured by the literacy level and its dispersion, (i.e. its average and standard deviation) and income distribution in the Iranian economy in for the period 1347-1380 (1968-2001 B.C.) in Iranian economy. O. Our findings indicate that as the (average) level of education increases, income inequality will decrease; but with increasing the standard deviation of education among citizens, income equality worsens.