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The experience of countries which implemented economic adjustment reveals that this policy affects the structure of income. The nature and legislative documents
of development plans in Iran Also demonstrate that in so many cases they were
influenced by conventional adjustments framework. Among to find out the impacts
of these policies on the structure of income distribution and using econometrics
model, MLE. Method and Johansen - Juselious for the years 1960-1990, the paper tries to examine the changes of Gini Coefficient as an indicator of income inequality
for Iranian economy. The variables such as economic growth rate, the ration of
social expenditure of government to GDP, real exchange rate, export ratio to GDP,
and the degree of Freedom of economy were entered into the model as substitution
variables of adjustment, and the results revealed that with an increase in variables
such as economic growth rate, social expenditure of government and degree of
Freedom of economy, Gini coefficient decreased and with and increase in
unemployment and inflation rate, especially in the periods when adjustment policies
were accompanied by measures like cut backs in public spending and subsidies, and
movement toward real prices, The Coefficient decreased.
JEL Classification: E25.