Rising income inequality hinders economic growth in Iran, study finds.
The article looks at how income distribution affects economic growth in Iran. They used a model that includes human capital and technology, and found that higher income inequality slows down economic growth. However, growth in employment, investment, technology, and education all help boost the economy. This study is the first to include human capital in the model and uses two different measures of inequality. The idea that less government interference in markets leads to better economic performance lacks strong evidence.