Private Insurance and Income Inequality in Iran

Abstract

This study surveys the impact of private insurance on income distribution. For this purpose, the panel data of the Iran’s provinces, during 2000 to 2012, has been used. The Provincial data has been gathered for 11 divided districts and the impact of private insurance as well as Inflation, unemployment and economic growth on the Gini coefficient has been tested by means of these data. As the dependency of districts has not been rejected by CD test result, data stationary has been tested by CIPS method and the SUR method has been used to evaluate the research model. Overall, this study indicates that the income inequality in Iran has been reduced by growth of private insurance.