Estimating the Inequality Indecies in Urban and Rural Areas in Iranian Provinces: During the five-year Development Plans

This study seeks to measure income inequality among provinces of Iran in urban and rural areas during five socio-economic, and cultural development plan by using household survey data from 1990-2015, that issue by Statistical Centre of Iran, Gini coefficient, Theil index, Atkinson index and Sen Welfare indecies are calculated for the whole country as well as all provinces. Gini, Theil and Atkinson inequality index presented the Compatible results and confirm each other. Inequality indices over the period 1990 to 2015 does not have deterministic trend. But generally has a downward trend that, suggests improving income distribution in both urban and rural area. Most reduce of inequalities in urban areas are related to the provinces of Azarbayjan-Ghrby, Ilam, Bushehr, Kermanshah and Zanjan, and in rural areas of Semnan, Yazd and Hormozgan . On the other hand, welfare indicator over the past decade for the whole country as well as all provinces is dropped during five-year development plans, inequality in urban and rural areas has been decreasing, although at this time the reduction of inequality is higher in rural areas. The Second Development Plan had less success in reducing inequality indices but the fifth development plan in this regard has been the most successful program. Sen Index shows that in the past decade, decreasing inequality does not leading to an increase in household welfare. Because of changes in price index for goods and services in urban and rural and negative growth of average household spending due impose heavy costs on the economy, which lead to extend the poor. Hence in interpreting of the coefficients of inequality, all its aspects should be considered in order to decision -making.