THE IMPACT OF REDISTRIBUTION OF OPPORTUNITIES ON INCOME INEQUALITY: A CGE APPROACH

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HAQIQI IMAN; MORTAZAVI KAKHAKI MORTEZA

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Journal: JOURNAL OF ECONOMIC MODELING RESEARCH Year:2012 | Volume:2 | Issue:7 Page(s): 51-73

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Title

THE IMPACT OF REDISTRIBUTION OF OPPORTUNITIES ON INCOME INEQUALITY: A CGE APPROACH

Author(s)

HAQIQI IMAN | MORTAZAVI KAKHAKI MORTEZA | Issue Writer Certificate

Keywords

JUSTICEQ2

EQUALITYQ2

GENERAL EQUILIBRIUMQ2

EQUALITY OF OPPORTUNITYQ1

EQUALITY OF RESOURCESQ2

Abstract

The allocation of opportunities affects income distribution and income inequality. This paper analyzes the economic impacts of initial allocation of resources and redistribution of opportunities. In this study, we apply a computable GENERAL EQUILIBRIUM (CGE) model focusing on distribution of opportunities and allocation of available resources. The differences between households' income are caused by differences in labor income (skilled and unskilled) and the household's income from capital stock. The model is calibrated based on micro consistent matrix (MCM) of Iranian economy. We found that, the redistribution of opportunities and re-allocation of resources can reduce inequality. In other words, improvement in EQUALITY of opportunities leads to more equal society. The important finding of the study is that an increase in inequality of opportunity may cause the income gap grows faster. So, big reduction in inequality of income after small reduction in inequality of opportunities can be witnessed.

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APA: Copy

HAQIQI, IMAN, & MORTAZAVI KAKHAKI, MORTEZA. (2012). THE IMPACT OF REDISTRIBUTION OF OPPORTUNITIES ON INCOME INEQUALITY: A CGE APPROACH. JOURNAL OF ECONOMIC MODELING RESEARCH, 2(7), 51-73. SID. https://sid.ir/paper/208841/en

Vancouver: Copy

HAQIQI IMAN, MORTAZAVI KAKHAKI MORTEZA. THE IMPACT OF REDISTRIBUTION OF OPPORTUNITIES ON INCOME INEQUALITY: A CGE APPROACH. JOURNAL OF ECONOMIC MODELING RESEARCH[Internet]. 2012;2(7):51-73. Available from: https://sid.ir/paper/208841/en

IEEE: Copy

IMAN HAQIQI, and MORTEZA MORTAZAVI KAKHAKI, “THE IMPACT OF REDISTRIBUTION OF OPPORTUNITIES ON INCOME INEQUALITY: A CGE APPROACH,” JOURNAL OF ECONOMIC MODELING RESEARCH, vol. 2, no. 7, pp. 51–73, 2012, [Online]. Available: https://sid.ir/paper/208841/en

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