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...