Contribution short abstract:

Inequalities in many Countries. Human development has been taken into account in many different studies which is the average of human development achievement in health, education, and income.

Contribution long abstract:

Relative Redistribution and Human Development

Mohammad Hassan Fotros

Professor, Economics Department, Bu-Alisina University, Hamedan, Iran

Marziyeh Esfandiari (corresponding author) m.esfandiari@eco.usb.ac.ir

Relative Redistribution and Human Development

Associate Professor, Economics Department, University of Sistan and Baluchestan, Zahedan, Iran

m.esfandiari@eco.usb.ac.ir

Mohadeseh Rahimi

M.A. in Economics, University of Sistan and Baluchestan, Zahedan, Iran

Atefeh Delgarm

Ph.D. candidate in Economics, University of Sistan and Baluchestan, Zahedan, Iran

Recent reports have shown that income and wealth inequalities in many Countries are extremely high, but not on a worldwide scale, nor within the accession protocols on essential services such as health care and education. Human development has been taken into account in many different studies which is the average of human development achievement in health, education, and income. It represents disparities in human development across the population within the same country. Inequality-adjusted HDI(IHDI) takes into account not only the three dimensions mentioned before but also how those achievements are distributed among its population. The impact of income distribution on human development has also been investigated in several studies and yielded conflicting results. The literature review reveals that the existing evidence is somewhat mixed and argues for further in-depth empirical work across disciplines. Income inequality is measured using the Gini index, and market income is used as the basis for calculating the Gini index. This index measures the extent to which the distribution of income (or sometimes consumer spending) among individuals or households in an economy is completely equal. Since taxes and transfers are tools to achieve equitable distribution, calculating the Gini index based on income after taxes and the addition of transfers can provide a more accurate picture of allocating state revenues. Income distribution can be effective in human development because human development factors, including health, education, education, and per capita income, are influenced by income distribution. Therefore, in this study, relative redistribution is considered as an inequality index of the income distribution while other studies use the Gini coefficient based on market returns. Furthermore, the present study departs others because of the countries involved. As oil exporting countries can ensure higher human development and due to a lack of data on some variables, we consider Canada, United States, Iran, Mexico, Netherlands, Russia. and China among oil exporting countries. Due to the difference between the human development index and income distribution in these countries, the impact of relative redistribution on human development inequality was studied using quantile regression in the period 2010 - 2010. According to the revised human development index, during the years studied, the United States, Great Britain, the Netherlands, and Canada ranked first, Russia in second, and Iran, Mexico, and China in father. Countries in the group have increasingly higher levels of human development than the second and third groups. Based on the relative redistribution index, Iran and Mexico are in first place, China and Russia are in second place, and the United States, Great Britain, the Netherlands, and Canada. countries in the third group are therefore better positioned in terms of relative income distribution. The results of this study suggest that relative redistribution, human development, and equality will increase as this often results in a misallocation of resources. Oil rental prices have a positive and significant impact on inequality-adjusted HDI. Therefore, tax collection from oil revenue management and the development of social programs in these countries are important to enhance human development and equality.