A Study on the status of Povertyand inequality in urban and rural areas in Iran during the before and after the implementation of Targeted Subsidy Reform Law(1391-1381)

Poverty and inequality as a social harm if not to be controled and limmited, can lead to extensive damage in the household and community levels, so economic, social and ethical life of society would be threatened. Iranian society, like other societies suffers from this condition. Thus, cosidering income inequality and analyzing the distributional effects of its policies is very important to promote economic growth. In this study, the raw data of household expenditure and income compared poverty status and inequality in rural and urban areas during the years before and after the implementation of the law of targeted cash subsidies. Using STATApoverty census index, the gap and severity of poverty and gini coefficient are measured. The results indicate that during the period 1381 to 1388 (before targeted cash subsidies law implement)levels of poverty and income inequalitywere high and had volatility. Poverty and income inequality in 1390 and 1391 compared to 1389 (the year the law enforcement targeted cash subsidies) in both rural and urban areas reduced.