Group items tagged

The gap between rural and urban incomes has been widening because the rural areas appear to have missed the recent boom or President Ahmadinejad’s redistribution.

Some of the gap is spurious because of the lower cost of living in rural areas (mainly housing), but the change is probably not.  

The rural-urban gap has been one of the main drivers of changes in inequality, especially in the last four years (more on this in a future post).     The gap narrowed under Mr. Moussavi’s watch, and widened during the Rafsanjani and Khatami’s administrations.  In the last three years of President Khatami’s government rural expenditures were rising faster than urban expenditures and the gap closed somewhat.