Authors
Abstract
The purpose of this research is investigation of the relationship between income inequality and business cycles in Iran over the 1351 to 1389. In this study, Gini coefficient is the indicator of inequality, and business cycles were obtained by using the Hodrick- Prescott filter. Also In order to examine the effect of business cycle on inequality, autoregressive-distributed Lag (ARDL) approach was attempted. Our findings show that business cycles have negative impact on income inequality. During recession, income inequality increases and in the booms decreases. Also we find that higher minimum wages decrease income inequality, and oil incomes increase it.
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