Study and Comparison of Rural and Urban Household Income Distribution in Khorasan Province and Country during 2007-2012

This study examined distrbution of household income in Khorasan Razavi province and the country for urban and rural areas, seprately. Using household income and expenditure statistics compiled by the Statistical Center of Iran during 2007-2012 the Gini index, Tile index, Atkinson index and the tenth docile to the first docile were applied.The study findings indicate that during the studied period income inequality in the country has been decreased. The levels of disparity in the urban areas have been usually higher than its levels in the country., while the levels of disparity in the rural areas have been always lower than its levels in the country.. Morever, income distributions in the urban areas and the entire province have been always more uneven than what has been seen for the rural areas. Analysing the Tile and Atkinson indicies (ε=1) shows that both ascending and descending trends of the two indicies were consistent with the Gini index and thus, the three indicies are compatible and validate each other. On the other hand, analysing the Gross expenditures per capita for households and the Gini index shows that the levels of welfare in urban and rural areas of Khorasan were almost constant, however the index for the urban areas of the country has been decreased and for the rural areas has been increased. The social welfare often have been lower for the the rural areas than the social welfare for the urban areas. The results indicate significant differences in income distributions among the province, the country''s rural areas and the urban areas.The sudy therefore proposes regional plannings to be considered.