Document Type : Research Paper

Authors

1 M.Sc Student, Department of Economics, University of Tehran

2 Assistant Professor, Department of Economics, University of Tehran, Tehran, Iran

10.22059/jwdp.2024.377061.1008452

Abstract

Introduction

Since the 1980s, researchers have adopted an approach to studying inequality, analyzing how various roots such as gender, socioeconomic class, religion, race, and ethnicity interact and intersect rather than examining them separately. This method of analyzing inequality is called the Intersectionality Approach. Intersectionality recognizes that individuals hold multiple, intersecting social identities that cannot be examined in isolation. For example, a person is not just a woman or just Black, but a Black woman, whose experiences are shaped by both race and gender simultaneously. The metaphor of the term “intersection” was first used by Kimberlé Crenshaw in 1989, who stated that white women and black women would experience gender inequality differently in society. Understanding black women’s history and social status should enable us to perceive and seek other similar situations in which systems of oppression and discrimination are gathered. Therefore, the Intersectionality Approach emphasizes that the effectiveness of each identity classification (e.g., race, ethnicity, nationality, social class, gender, sexual orientation, religion, etc.) on a person’s life cannot be differentiated from other identity classifications. In other words, all of those identities are interconnected in simultaneous interactions forming a person’s experience of inequality in society. Many intersectionality-based studies have focused more on gender and racial identities among a wide range of identities. Since ethnic identity is more important than racial identity in Iranian society, we will focus on people’s gender and ethnic identities in this study. Therefore, this study investigates the impact of the intersection of gender and ethnicity on income inequality in Iran.



Methodology

We use data from two sources: 1) The Household Expenditure and Income Surveys (HEIS) collected by the Statistical Center of Iran during 2016–2020. The dependent variable is the natural logarithm of an individual’s total gross annual income, and the dependent variables are age, years of education, residence (urban areas or rural areas), marital status, employment status, household income status, ethnicity, gender, and the interaction of gender and ethnicity. 2) The data from the National Survey of the Consumption of Cultural Goods (2019) and Surveying the Country’s Public Culture Indicators (2010) are used to develop the variable of ethnicity. The specific locations of various ethnic groups in Iran and their migration patterns over time are not currently documented. Nevertheless, one's place of residence can serve as an indicator for identifying their ethnicity. In Iran, each ethnicity is defined by its unique language and region of residence, making these along with cultural factors the main distinguishing features of ethnic groups. Nevertheless, the precise borders of ethnic groups do not perfectly match provincial borders, and knowing a person’s region of residence cannot help accurately predict what ethnic group they belong to. Additionally, many of the ethnic groups in Iran account for a low percentage of the total population. Since women are represented by a lower percentage of data than men, we classify the variable of ethnicity under two categories: the Fars category (including the Fars ethnicity) and the non-Fars category (including Azeris, Kurds, Arabs, Baluchs, Lors, Turkmans, Mazanis and Gilaks). In this study, Ordinary least squares (OLS) (which focuses on the relationship at the mean point of the distribution) and quantile regression (which focuses on the relationship at various points of the distribution) are used for statistical analysis through both cross-sections and pooled data. The intersection of gender and ethnicity is then added to the research model to analyze the effect of ethnicity on the gender income gap in Iran while adding gender and ethnicity to the model separately.



Findings

Our findings, based on OLS and Quantile Regressions, reveal a persistent gender income gap across all income percentiles and ethnicities, with women consistently earning less than men. Additionally, regardless of ethnicity, the gender income gap is the largest for women in the lowest income percentiles and smallest in the middle percentiles. Furthermore, the interaction term between gender (being female) and ethnicity (being non-Fars) is significant and negative for both low and high-income groups. This suggests that being non-Fars exacerbates the gender income gap for women, regardless of income level. Our results highlight the importance of considering intersectionality when formulating policies. Policies aimed solely at reducing the gender income gap might be ineffective unless they acknowledge the diversity of ethnicities within a society. We observed a statistically significant interaction effect for middle and high-income groups in 2016, 2017, and 2018. This effect, however, became statistically non-significant in 2019 and 2020.



Conclusion

The Intersectionality Approach is a framework for identifying and elucidating the complexities that humans experience in their personal and social lives. This approach analyzes the interconnection of various forms of inequality and relevant effects on a person’s life experience. As per the research findings, the gender income gap was observed in all percentiles and all ethnicities. Regardless of ethnicity, the gender income gap is the largest for women in the lowest income percentiles and smallest in the middle percentiles. Furthermore, for both low and high-income groups being non-Fars exacerbates the gender income gap for women. The Intersectionality Approach is an appropriate tool for improving the quality of decisions made by policymakers. Our results highlight the importance of considering intersectionality when formulating policies. Policies aimed solely at reducing the gender income gap might be ineffective unless they acknowledge the diversity of ethnicities within a society. Some intersectionality-based policies are proposed as follows: Strengthen and enforce policies that prohibit discrimination in hiring, promotions, and workplace practices, including specific provisions to protect women of diverse ethnic backgrounds. considering non-Fars women’s special needs and situations while formulating and implementing gender equality policies; investing in economic and educational empowerment plans for non-Fars women; supporting non-Fars women’s entrepreneurship; eradicating the sociocultural obstacles that challenge non-Fars women in the labor market; considering women’s status on different income levels while formulating gender equality policies; providing female-headed households with further social and financial aids; and providing childcare plans for working women in lower income deciles. Making sure that the composition of legislative bodies and political institutions mirrors the diversity found within the population; advocating for policies that cater to the requirements of marginalized groups.

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