Objective: Income inequality affects consumption structure via changes in the composition of expenditure basket. Shocks, fluctuations, disparities, and dispersions of income inequality, is expected to be transmitted to consumption expenditures. These shocks might induce inequalities in consumption expenditures. This paper tries to measure the amount of such consumption expenditures inequalities that are derived from income inequality.Method: To measure the consumption expenditures inequality and income inequality, the variance of logs is employed. For this purpose, Iranian urban households' data of the period of 1982 to 2007 is used. To analyze relations between variables, panel data methodology is applied. Findings: All fluctuations of income distribution do not translate in consumption expenditure distribution. Conclusion: The distribution of households' consumption expenditure in comparison to the distribution of income is less subjected to fluctuations and variations.

Globalization has two aspects. One of it's most important aspects, which has a severe impact on the "prevention of poverty and inequality", is the mobilization and release of capital, This movement not only prevents the workforce from obtaining the minimum standard of living, but also, through the high bargaining power in the area of tax reduction, decreases the power of government to create the infrastructure for the workforce and the population suffering from inequality.The decrease in social protection will change income poverty to ability poverty and consequently will increase the severity of overall poverty and inequality. At this point, globalization, with its liberal nature, has a negative impact on the quality living for the majority of the population. Many have come to the conclusion that the remedy lies in changing the trend of globalization from a market-oriented approach to a people-oriented approach. The only solution is to begin by returning the power of the government to establish extensive social protection, as well as social supervision of the capital of the world.

On the basis of macroeconomic consumption theories, consumption behavior as compared to income is more stable. Overtime income inequality that is, appeared as fluctuation and dispersion in income, would affect consumption expenditure. In this paper the extent of consumption expenditure inequality that are caused by income fluctuation and dispersion was analyzed. The inequalities of household consumption expenditure were analyzed for eight goods and services categories. Urban household budget panel data for the years of 1982 to 2007 were used and causal relationship between the variables analyzed. The results showed that not all of the fluctuation and dispersion in income were transferred to consumption expenditure. Therefore, consumption expenditure was less dispersed than income.

Reviewing the literature of inequality decomposition by subgroups shows that between-group inequality (urban and rural areas) often accounts for a small share of total inequality. Therefore, in interpreting the result, researchers give less emphasis on designing appropriate policies for removing inequality across those areas. In this paper, we employed maximum between-group inequality approach for getting a better understanding of the importance and the role of between urban and rural areas inequality in overall inequality in Iran. The analyses have been done using annual data for 2004, 2008, 2012, and 2016 drawn from the Iranian Urban and Rural Household Income and Expenditure Survey. As expected, the results of conventional decomposition method (Theil index) show that inequality between urban and rural areas have a contribution of only 11. 25 percent to the overall inequality. However, the results of maximum between-group inequality method show that the between-group inequality plays a more important role in overall inequality. In particular, the results of this technique show that the contribution of between-group inequality to the overall inequality is almost twice that obtained from conventional decomposition method. The important policy implication of the results is that economic policies aiming at reducing inequality should be much more concerned about this component of overall inequality in Iran. Furthermore, the findings of this paper reveal that overall inequality has been reduced after the implementation of Targeted Subsidies Reform in Iran.

The aim of this paper is to evaluate the effect of income inequality (II) on happiness inequality (HI) in Iran. For this purpose, the literature was reviewed for the relationship between II and HI including income marginal happiness descending, income smoothing theorem and inverted Maslow pyramid of happiness. Then, the factors that affect HI were estimated by means of a threshold regression model during the period of 1973-2014. The estimation results showed that II has a nonlinear and threshold impact on HI. Thus, the Maslow happiness theorem that describes the impact of II on happiness at the top of inverted pyramid was confirmed. In this case, when Gini coefficient is less than 0. 416, in the low II regime, an increase in II has a significant negative impact on HI. This is because of being at the bottom of Maslow pyramid. However, after the threshold point, in the high II regime, an increase in II has a significant positive impact on HI because of moving up the pyramid. Therefore, smoothing income in a cross cutter or time series decreases the downward slope of income marginal happiness, which can decrease HI. Based on the results, policymakers are suggested to pay attention to the Gini threshold point of 0. 416 to decrease HI. In addition, when II is higher than the threshold level, they can improve happiness distribution with income redistribution policies.