An Investigation on the Size and the Welfare of Different Income Groups During 1376-1399 and an Estimation of the Mobility of the Iranian Urban Low-Income Households

Ghaderi, Alireza | 2022

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 54915 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Nili, Masoud; Mohaghegh, Mohsen
  7. Abstract:
  8. In this study, based on Households Income and Expenditure Survey (HIES) data, we examined the socio-economic characteristics and transition of Iranian urban households in each of the three different income groups from 1997 to 2020. Moreover, factors affecting entry to poverty or persistence in poverty in Iranian urban households are discussed.The results of this study show that, contrary to popular belief, there is no evidence of accumulation of entrepreneurs and business owners in the urban middle class. Rather, middle-income households have higher-skilled jobs and pay more for social security than low-income ones, as well as pay more attention to investing in human capitals (education and health). We find that most heads of high-income households are out of the labor market, and their main source of income is not capital rents, but pensions. On the other hand, the size of the urban middle class has been increasing from the mid-2000s to the early 2010s, and then has shrunk, which has been accompanied by the spread of poverty. In the last decade, the chronic poverty has increased significantly; in 2020, about three-quarters of low-income households were in poverty for at least two years. Retirement or employment of household’s head in government jobs has greatly reduced the risk of becoming poor or remaining poor. On the other hand, inflation has significantly increased the likelihood of both entering poverty and persistence of poverty in Iranian urban households
  9. Keywords:
  10. Income Distribution ; Household Expenditure and Income ; Poverty Dynamics ; Multivariate Probit Model ; Income Groups Size ; Income Poverty

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