Poverty Dynamics in Iran

The Journal of Poverty Dynamics in Iran Abs tractUnders tanding the dis tribution of poverty within society-whether chronic or transient-is crucial for designing and implementing effective poverty reduction policies.This paper uses seven panels of data spanning different periods from the 1990s to the 2020s to es timate chronic poverty trends in Iran, applying two methods: the components method and the equally dis tributed equivalent (EDE) poverty gap method.The components method reveals a lower proportion of chronic poverty compared to the EDE approach, which es timates this figure at an average of 88%.Over time, chronic poverty trends have paralleled broader macroeconomic conditions, declining from the 1990s through the early 2010s, s tabilizing briefly, and then increasing again by the late 2010s.The EDE poverty gap method also dis tinguishes chronic poverty into two parts: the average poverty gap and an inequality component.The findings sugges t that changes in chronic poverty are primarily driven by fluctuations in the average poverty gap, with inter-individual inequality playing a less prominent role, despite consis tently comprising a larger share of chronic poverty.