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Decrease in the Gini Coefficient of Iranian Households in 2025 and Its Impacts on Society
Economy

Decrease in the Gini Coefficient of Iranian Households in 2025 and Its Impacts on Society

منبع تصویر: hamshahrionline.ir

By Euronews Farsi Editorial 3 min Read time 28,039

The Gini coefficient, one of the most important indicators of income inequality in society, reached 0.3849 in 2025, indicating a decrease of 0.0021 units compared to the previous year. This coefficient tells us how unevenly income and wealth are distributed among households. In fact, this number shows us that the closer we get to one, the greater the inequality in income distribution becomes.

Urban and Rural Household Status

In 2025, the Gini coefficient for urban households was recorded at 0.3686, while for rural households it was 0.3543. While the Gini coefficient for urban households has decreased by 0.0003 units compared to 2024, the Gini coefficient for rural households has increased by 0.0011 units. This statistic indicates that while income inequality in cities has improved, the situation in rural areas is moving in the opposite direction.

Income Distribution and Inequality

According to statistics, the share of the lowest and highest twenty percent of the population is 6.15% and 46.18%, respectively. These numbers indicate that the income gap among different segments of society is significantly noticeable. The ratio of the top ten, twenty, and forty percent of the highest earners to the lowest earners in the country is 12.82, 7.51, and 4.04, respectively, reflecting severe inequality in wealth distribution.

Other indicators also exacerbate this inequality, such as the Palma index, which has reached 1.80, and the Theil index, which has reached 0.2508. Additionally, the Atkinson index has reached 0.2212, indicating greater inequality in income distribution.

Provincial Status Analysis

In 2025, among urban households, Kerman province had the lowest Gini coefficient (0.2492) and Tehran province had the highest Gini coefficient (0.4021). In rural areas, Qazvin province had the lowest Gini coefficient (0.2525) and Hamadan province had the highest Gini coefficient (0.3786). These provincial differences indicate deeper inequalities in income distribution among various regions of the country.

Therefore, considering the decrease in the Gini coefficient in 2025, it seems that some households are experiencing an improvement in their financial situation, but inequality in income distribution remains a serious challenge for Iranian society. Measures need to be taken to reduce this inequality and improve the economic situation of families to provide a better life for all segments of society.

Source: hamshahrionline.ir