Economic Crises and Income Mobility in Iran, a Pseudo-Panel Approach for the Period of 2003-2013

Fotros, Mohammad Hassan; Shahbazi, Fatemeh (2014). 'Economic Crises and Income Mobility in Iran, a Pseudo-Panel Approach for the Period of 2003-2013' Paper presented at the annual conference of the HDCA, 2-5 September 2014, Athens, Greece.

 The current financial crisis is the worst the world has seen since the Great Depression of the 1930s. In the new, globalized world of closely interdependent economies, the crisis affected almost every part of the world ( So far we have witnessed a huge economic crisis. One of the crises that swept through the world's economies and the global financial crisis became known by the year of its occurrence, 2007. This crisis has spread gradually to all the world's economies and markets. Iran has also, directly or indirectly, affected by international crises. The impact of the economic crisis on world demand for energy is manifested in the oil price fluctuations; and oil revenues have a canonic role in Iranian economy. At times, the entire economy is affected by different problems such as high inflation, widespread economic slowdown and recessions. All these flaws are somehow influential on income distribution and income mobility. The notion of mobility relates to the evolution of socioeconomic status among economic agents. Mobility examines how individual displacement in the income distribution between two or more points of time is deployed. Income mobility is a pretty well new concept in economics that studies the changes in socioeconomic status of income groups. Differences in socio-economic conditions create inequality of opportunities and is expected to influence functioning and capabilities of individuals and groups. The main purpose of this paper is to investigate the trend of income mobility in Iran in a period covering five years before and five years after 2007 financial crisis. For the estimation of economic parameters that measure the relationships between chosen variables, we use the methodology of pseudo panel. These pseudo panels will be constructed taking advantage of the Iranian household surveys.

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