Effect of HDI on Dropping out in Iran Education System (Case Study in Iran Provinces)

Aim of this paper is identify and effect of HDI on dropping out in Iran education system for male and female. For this purpose we use panel data model with 30 provinces during 2001- 2008. In this research dependent variable is dropping out rate and explanatory variables are «HDI» «income per capita»، «unemployment rate» and family size. The result shows that the HDI has a remarkably negative effect on education dropping out rate. If we assume that the income per capita to be a proxy for poverty contrast، decreasing of poverty (increase income per capita) has a positive effect on education dropping out rate، for male is more than female. The unemployment rate has a positive effect on education dropping out rate in male group and not in female. In stylus fact it is true، because in high unemployment economics the wage decreasing and son is the first person for work in family.