The Impact of Misery Index and Corruption Control on Income Inequality (With the Quantile approach)
The increasing trend of income inequality, high inflation and unemployment, and social injustice in various societies, especially in developing countries including Iran, have made reducing income inequality and equitable income distribution one of the most important goals of governments and economic policymakers. To make the right decisions and policies and control income inequality, it is necessary to identify the determinants of the inequality. Therefore, in this study, the effect of misery index and corruption control on income inequality has been examined in Iran using quantile approach during the period 1375-1398. The results of quantile regression model estimation show that corruption control, economic freedom index and exchange rate have a significant, positive effect on income inequality while the misery index has a positive effect at the lower quantiles and a significant, negative effect on income inequality at the other quantiles. Also, using the bootstrap method estimation, the results of quantile regression estimation have been confirmed.The increasing trend of income inequality, high inflation and unemployment, and social injustice in various societies, especially in developing countries including Iran, have made reducing income inequality and equitable income distribution one of the most important goals of governments and economic policymakers. To make the right decisions and policies and control income inequality, it is necessary to identify the determinants of the inequality. Therefore, in this study, the effect of misery index and corruption control on income inequality has been examined in Iran using quantile approach during the period 1375-1398. The results of quantile regression model estimation show that corruption control, economic freedom index and exchange rate have a significant, positive effect on income inequality while the misery index has a positive effect at the lower quantiles and a significant, negative effect on income inequality at the other quantiles. Also, using the bootstrap method estimation, the results of quantile regression estimation have been confirmed.
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