The effect of targeted subsidies on income inequality in Chaharmahal and Bakhtiari province

Bagheri Pidni, Arsalan; Maddah, Majid; Farahati, Mahboobeh

doi:10.30465/ce.2026.52102.2043

The effect of targeted subsidies on income inequality in Chaharmahal and Bakhtiari province

Document Type : Scientific-research

Authors

Arsalan Bagheri Pidni ¹

Majid Maddah ²

Mahboobeh Farahati ³

¹ M. A. of Economics, Faculty of Economics, Management and Administrative Sciences, Semnan University, Iran

² Professor of Economics, Faculty of Economics, Management and dministrative Sciences, Semnan University, Semnan, Iran

³ Associate Professor of Economics, Semnan University, Semnan, Iran

10.30465/ce.2026.52102.2043

Abstract

This study, using a regression-based analysis of variance (ANOVA) model, examines income inequality in the urban and rural areas of Chaharmahal and Bakhtiari Province over the period 1984–2021 and evaluates the impact of the Targeted Subsidies Policy on inequality levels. The findings obtained from model estimation indicate that income inequality in the province’s urban areas is lower than the average level of inequality observed in urban areas nationwide. Likewise, income inequality in the province’s rural areas is also lower than that of rural areas at the national level. Furthermore, based on the results of the analysis of variance (ANOVA), income inequality in the rural areas of the province is significantly higher than in the urban areas. In addition, the findings of the study indicate that the implementation of the targeted subsidy policy has led to a reduction in income inequality in both the urban and rural sectors of Chaharmahal and Bakhtiari Province. However, it should be emphasized that this reduction in inequality has not necessarily been accompanied by improvements in welfare or an enhancement of the standard of living in the province.

Keywords

Chaharmahal and Bakhtiari Province

Targeted Subsidies

Analysis of Variance

Urban and rural areas

Income Inequality

Subjects