Why is zakat unlikely to resolve the problem of inequality?
Answers
first of sovle what is unlikely than inequality automatically solve
Zakat is an Islamic social security system as well as an Islamic socioeconomic system that aims to reduce and minimize the gap between the poorer and the richer in Islamic societi es. There are numerous theoreti cal works that examined and analyzed the role of Zakat on poverty eradicati on and people's well-being. Dispute the theoreti cal works, the empirical knowledge on the subject matt er is remained shadow. This study takes one step forward and employed the Generalized Method of Moments (GMM) panel analysis for the period 2001-2012 of 14 Malaysian states to examine the impact of Zakat expenditure on income inequality and poverty in Malaysia. The results indicated, while Zakat has no signifi cant eff ect on income inequality, Zakat signifi cantly reduce both poverty incidence and hardcore poverty. The study suggested Zakat insti tuti ons funds to employ Had-Kifayah Zakat distributi on model.