Estimating Poverty Line and Investigating Determinants of Poverty for Rural and Urban Households in Iran

    P overty alleviation is a key policy debate in recent development literature. The elaboration of policies for poverty alleviation requires a thorough knowledge of the poverty phenomenon as well as an understanding of the efficiency of implemented programs. The study used primary data from the Household Survey of 2003 carried out by the Statistics Center of Iran which covers 12175 rural and 10951 urban households. Food poverty line and total poverty line were estimated using Food Energy Intake Method and nonparametric regressions in rural and urban sectors in Iran. In addition, poverty and its determinants in Iran were investigated by probit model. Results indicated that poverty in rural areas was more widespread when compared to that of urban areas. Household size and number of employed persons in the households were among the most important determinants of poverty in Iran.