Conference Paper
Equal Opportunity Stagnation: Intergenerational Income Mobility in Iran
No.
ERF32AC_171
Publisher
ERF
Date
May, 2026
Topic
J1. Demographic Economics
This paper examines intergenerational economic mobility in Iran using a synthetic panel constructed from repeated cross-sections of the Household Income and Expenditure Survey. We document a strong U-shaped pattern of relative mobility: children from both the lowest and highest parental deciles are highly likely to remain in the same position as adults, while mobility is greater among the middle deciles. At the same time, average absolute mobility is relatively high; about three-quarters of children achieve a higher real living standard than their parents. The coexistence of limited rank mobility and broadly rising living standards suggests that opportunity has not expanded proportionately with material progress. We show that these patterns are consistent with persistent disparities in access to high-quality education, regional economic opportunities, and intergenerational transfers. The results highlight a case where moderate inequality coexists with low mobility.