Variations of Income Distribution and the Economic Adjustment in Iranian Economy

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.