Measurement of Inequality of family income distribution in Iraq after year 2003

Abstract

the present study aims at determining digital and data markers in the inequality income distribution in Iraq in the period after 2003. In order to achieve the aim of this study. The researcher analyzed the data of the Iraqi family income for the two surveys of the family's budget done in 2005 and 2007.This is after its reclassification and remodification. The study concluded that the degree of inequality is so high according to all criteria that were used specially in 2005 in comparison to the years prior to the period of the study and in many developing countries which have similar circumstances to Iraq. The value of Gini coefficient reached 0.42 and 0.38 in 2005 and 2007 successfully. While the value of Kuznets coefficient reached 0.33 and 0.30 for the above mentioned years . It becomes clear from this study that the lower categories were the hardest hit in income distribution. For example The value of the lower %30 of the families reached %10 and %11.8 from the income for the two years. The study also showed that the degree of the economicWelfare decreased to %17 in year 2005 comparison to the year 2007.The following recommendations were suggested in order to limit the degree of discrepancy in income distribution : 1-When applying the studies of economic profitability (feasibility), the state must prefer establishing interprices which contribute in increasing the incomes of the different classes through the services and job opportunities which those interprices provide specially those which are funded by the government. 2-Activating the productive sectors (agricultural and industrial) in order to increase the productivity and limit the unemployment . This is through providing work opportunities to the individuals . Then decreasing the degree of discrepancy between the families and individuals. 3-Supporting the prices of consumers specially those who belong to the classes of limited income and expanding the social protecting net .