Insurance, Inequality and Sustainable Development; The Effect of Private Insurance on Income Inequality in Selected Developing and Developed Countries

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Economics, Mazandaran University, Babolsar, Iran

2 Associate Professor, Department of Economics, Mazandaran University, Babolsar, Iran

3 M.Sc. Department of Economics, Mazandaran University, Babolsar, Iran

Abstract

Over the past few decades, the distribution of income has become increasingly important to researchers and policymakers. There is a consensus that the most important cause of poverty is not the lack of income but its unjust distribution. Therefore, besides considering economic growth, policymakers use some tools such as insurance to improve income distribution. The present study estimates the effect of private insurance o n income inequality in 50 selected countries between 2000 and 2020 using the dynamic panel data method. The results show that the variable of insurance penetration coefficient has a negative and significant effect o n income inequality. Private insurance not only prevents further poverty but also increases household confidence and stability in consuming and investment behavior. This enabled them to take advantage o f more range o f income opportunities. Therefore, expanding private insurance to reduce income inequality and economic development should be considered a priority.

Keywords

References

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