The Effect of Gender Wage Discrimination on Poverty in the Iran's Provinces

Document Type : Original Article

Authors

1 PhD Student of Economic Sciences, Yazd University

2 professor in Economics, Faculty of Economics, Management and Accounting, Yazd University, Yazd, Iran

10.48308/jem.2024.235774.1917

Abstract

Numerous empirical and theoretical evidences emphasize that poverty is one of the main obstacles to development. Therefore, the eradication of poverty is the challenge facing the international community in the effort to create a peaceful and just world, and the first priority of the United Nations Sustainable Development Goals is "ending poverty in all its forms". In fact, if conscious participation in development is considered not a privilege but a right, one of the most important obstacles to this right is poverty. Since the first step in effectively dealing with a problem is to know its determining factors, the present research is devoted to the investigation of factors affecting poverty with an emphasis on gender wage discrimination in the Iran's provinces during the years 2006-2021 with five-year intervals. After determining the Foster, Greer and Thorbecke poverty indices, the Neumark decomposition method is used to calculate gender wage discrimination. The variables of mobile phone penetration rate, the share of government construction costs, dependency ratio and inflation are entered as control variables in the model, and effective factors on poverty indicators is investigated using the panel data model. The results show that the effect of wage gender discrimination, dependency ratio and inflation on poverty is positive and significant, and the effect of mobile phone penetration and the share of government construction costs on poverty is negative and significant. The results indicate that measures that reduce gender wage discrimination can also be effective in reducing poverty.

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