An Analysis of Income Dynamics in Rural and Urban Households in Different Occupations

This study aims at investigating the income dynamics for Iranian households in various occupations including public, private, agriculture, non-agriculture, and miscellaneous.To achieve this purpose, we used peso-panel data approach for the period of 2001-2019.The results indicate an increase in lagged income leads to a negative effect on the income of rural households, and the income of agriculture and miscellaneous occupations of urban households. On the other hand, this change induces a positive effect on public, private, and non-agricultural income of urban households. In addition, the age of household has negative effect on the income of rural households and has positive effect for urban households in public, private, and non-agricultural occupations. Finally, education has positive effect on the income of public, non-agricultural, and miscellaneous occupations for both urban and rural households, and negative effect in agricultural occupations for urban households.