Study of Income Mobility in Iran during the Years Before and After the Implementation of Targeted Cash Subsidies (1984 -2013)

Document Type : Research Article



This study investigates the dynamics of a pseudo-panel data approach in the years before and after the implementation of targeted cash subsidies in Iran. For this purpose, a combination of cross-sectional data for the years 1363 to 1392 for a period of 30 years followed and with household budget by born pseudo-panel data in 1305 to 1359. The results show that during the years 1363-1389 (before the implementation of targeted cash subsidies), absolute and conditional mobility in low and unequal opportunity is decreasing over time, but the rate of decline is lower inequality. So it is possible that some differences between rich and poor is reduced over time, but it will be too weak convergence. In fact, the situation is somewhat better for the poor than in the past, but the disparity between them is still somewhat high. After enforcement targeted cash law subsidies as absolute and conditional mobility is low, and the disparity between rich and poor people is so high.