Inequality Decomposition: Case Study, Urban and Rural Areas of Tehran Province (During 2000-2007)

Knowing income inequality in socio-economic subgroups helps us to achieve justice. The main goal of this study is to evaluate، decompose and compare the Theil and Atkinson inequality indices in terms of the inequality within and inequality between urban and rural area in Tehran province during the 3rd and the 4th Economic Development Program of Iran. Doing so، we used the micro households'' data along 2000 till 2007. The results show that the contributions of inequality within Tehran Province were respectively belong to urban area، rural area and between them inequality. The results of analyse of Variance represent no statistical significance in the seemed difference between inequality at the first three years of the 3rd and the 4th Iran''s Economic Development Program. According to these، reducing inequality in Tehran province needs to focus on inequality within Urban Areas.