Examination of the Effects of Income Mobility on Consuming Welfare of Urban Male Heads of Household in Iran

Inequality in the allocation of opportunities has always been one of the main sources of economic concern on national and global scale. At national level, income mobility is a criterion that measures the degree of equality and inequality of opportunities in a society. In this paper, a type of pattern data building pseudo-panel is designed in order to examine the effects of income mobility on consuming welfare of urban male heads of household in Iran. The pattern is designed by combining cross-sectional data of household budget of generations of families that are in the years 1988 to 2011 on track. The results indicate that the middle age generation has higher income mobility and lower opportunity inequality compared to young generation. The more the opportunity inequality is, the larger the consuming gap will become between individuals. Therefore, by reduction of inequality of opportunities, the increase of consuming welfare can be seen.