The Effects of macroeconomic indicators on The income distribution in Iran

In order to estimate the effects of the macrc~econornic indicators on the income distribution of Iran, the time series data during the period of 1971-1991 were used. First the yammetric inequality indicators (the Gini coefficients) were estimated for the years 1991-1972.
The results show the lowest level of inequality in 1980 with G=0.42 and the highest level in 1982 with G=0.55.
Arzulysing the effects of macroeconomic factors on the distribution of income, it is ,found that the labotir ratio wtrs the most important factor effecting the inequality; one percent increase in this
mtio will reduce the inequality by about 3.1 percent. In the same direction, one percent increase in productivity of' lcibour will reduce the inequality by about 0.57 percent. On the other hand, the government expenditure per household, inflation (the concumer price index growth), the share of' personal income from GNP arzd the total tax per household all with one lag had increasing eflects on the
inequality level. The results show one percent increase in thegovernment expenditure per household, was spend in such a way that instead of decreasing inequality, it had increased the inequality level by about 0.36 percent. Also, one percent increase in infkrtion
personcrl incoine share, total tax per household, each had increased the inequality level of the next year by about 0.06%, 0.37% and
respectively.
Therefore, the tax system and/or the tux collection hystem have been managed in such a way that had increasing effect instead of decreading effect. Also, both the indirect as well as direct tux tzad
eJJjCects on the same direction as the total tax.