The Role of Rural Industries in Optimal Distribution of Income in Iran: A Case Study in Central District of Mashhad County

Rural poverty and unequal distribution of income mainly have emanated from unequal distribution of factors of production and it is one of the main dilemmas of rural communities. Establishment of industries in rural areas can reduce the income gap. This paper is a case study in central district of Mashhad county, comparing the average income of those employed in industry with other sectors and the role of rural industries in the distribution of income. The paper studied 301 households in sample villages in which rural industries have generated employment opportunities and income for low income groups. The results of t-test and Gini coefficient related to employees of industrial and non-industrial sector indicate an improvement in income distribution among employees of industrial units. Wilcoxon test indicates that income satisfaction has improved among employees of industrial units in comparison with past experience. The results of a comparison between the income satisfaction of industrial and non industrial employees indicate a significant difference.