The purpose of this paper is to investigate the effects of health and education on income distribution and poverty in selected Islamic countries.
A model of income inequality along with a model of poverty, with same explanatory variables, are specified. In these models, the main variables are income level, health status, the level of education and the level of savings. The models are estimated using a panel data set for 37 Islamic countries covering eight time periods.
The results show that boosting the health and education status in Islamic countries will reduce income inequality and poverty in Islamic countries.
The results of the empirical examination will help governments in Muslim world to identify areas that need to be improved upon in order to reduce income inequality and alleviate poverty.
The paper is the first of its kind, which provides empirical evidence that the health and education status is negatively associated with income inequality and poverty in Islamic countries.
