Islamic Inheritance and Wealth Distribution: A Microeconomic Perspective on Equity and Household Economics

Abstract

This study explores the microeconomic implications of faraid (Islamic inheritance law) as a structured mechanism of wealth distribution rooted in Islamic jurisprudence. Despite its normative clarity and ethical rationale, faraid remains underexplored within modern economic analysis, particularly at the household level. This research employs a conceptual methodology to investigate how Islamic inheritance influences savings behavior, asset fragmentation, intergenerational mobility, and economic participation. By integrating Islamic legal theory with microeconomic frameworks such as utility theory, transaction cost economics, and distributive justice, the paper demonstrates that faraid operates as a decentralized tool for wealth redistribution and familial equity. It critically analyzes key themes including gender equity, legal harmonization, and poverty alleviation, showing how Islamic inheritance supports inclusive economic development and inter-family solidarity. The study also evaluates policy synergies between faraid, zakat, and waqf, proposing a model that aligns Islamic ethical obligations with modern distributive strategies. The findings contribute to both Islamic economics and legal reform discourse, offering a holistic framework to utilize faraid in mitigating wealth inequality. This research underscores the importance of integrating Islamic inheritance into national development policies for Muslim-majority countries seeking ethical and sustainable economic frameworks.