Income Inequality in Iran Essay examples

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There are many problems that face Third World nations. Income inequality affects all nations in the world. It affects some countries more than others though. Income inequality is a major problem in the Third World. In the Third World, the top 1% of people earns 15 % of the income, and the top 5% earn 40% of the income. However the poorest 20% earn only 1% of the global income. This creates a world of haves and have nots. This affects many aspects of society in a county. In the Islamic Republic of Iran, income inequity is a serious issue. One social service that is affected greatly is education. Areas that are poorer do not get the same level of education as areas that are richer receive. This inequality in education is caused…show more content…
The lack of foreign trade has severely hurt its GDP, but Iran is able to trade oil with China and receive large profits. This has been able to help grow the Iranian economy. However, the oil profits have not been able to eradicate income inequality in Iran. There are many ways to measure income inequality of a nation. One way to measure income inequality is to check the distribution of benefits toward the overall population over broad demographics. For example, the distribution of education or health care over the entire population is a good measure of economic inequality. How many schools per capita is another way to measure income inequality. The most common way to measure income inequality is by the Gini Coefficient. The Gini Coefficient ranges from 0 to 1, with 0 meaning total income equality where everyone has an equal amount of personal income, to 1, where 1 person has all the income and everyone else has none of the income. Most nations fall between 0.12 and 0.75. The Gini Coefficient in 2010 for Iran is 0.44. This is a medium Gini Coefficient. For comparison, the Gini Coefficient for the United States is 0.38. The United States has a high Gini Coefficient for the developed world while Iran has a low Gini Coefficient for the developing world. The largest area of inequality in Iran is the rural-urban divide. In the mid-1980s there was an economic recession that
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