Reversal of Fortunes: The Rise and Fall of Lifetime Earnings of Iranian Men

The article examines changes in lifetime earnings and consumption for Iranian men who have lived through the last 3 tumultuous decades. The economic collapse of the 1980s, coming as it did after 25 years of steady improvements in the standard of living, is one reason why today there exists a widespread feeling of lost fortunes as a result of the revolution, even though, as measured by average indicators, economic growth since the end of the war with Iraq in 1988 has erased most of those losses. Survey respondents may try to hide nonwage and non-salary income for reasons of tax evasion. The gap between incomes and expenditures has remained relatively constant over time, and the two series track each other closely. Including the unemployed is important because the unemployment rate for the young has increased substantially over time, and it is important that the average cohort incomes reflect the fact that they are unable to work.