This thesis sheds light on the main aspects of economic inequality in the Iraqi Kurdistan. The main objective of this journey is to determine the reasons for the growing inequality in the period under study (2004-2010) in Iraqi Kurdistan, hoping to reach some conclusions which pave the way to researching it. Within this long journey, it has been argued that inequality is firstly inherited. Families have left different stores of abilities and skills to their children. However, this is not the only type of inheritance inequality. Part of the inheritance inequality has been caused by the nature of the economy and the political system, which have dominated in Iraq and Kurdistan during the last three decades. In the past, government intervention and massive regulation have been responsible for corruption and expanding inequality as a consequence, left another period of chaos. After removing Saddam, the political system has shifted to a free market, but without bringing the promised fruits for people. Corruption has a hand in expanding distances between individuals, social groups, and geographical areas. Though elements of corruption can be seen through distributing national incomes, an evaluation for the public policies tells us that even in the absence of corruption, inequality can be expanding. The culture of the labour market does not let the individuals perform well. It does not offer equal opportunities for two agents of the same age who hold the same certification. The traditional division of labour, between the market and the home, can still be observing. This division has made two types of market: the labour market and the marriage market. Women are socially encouraged to spend their energy and time on collecting the abilities that are necessary to make a good choice in the marriage market. The skills of the marriage market are clear: to be an honoured wife, who has had no previous relations with men and able to prepare food and take care of their children. Nevertheless, when they enter the labour market, they see another division: some jobs are for men, others for women. The official surveys, done by international organizations in accordance with the Ministry of Planning of both Iraq and Kurdistan, in addition to the two surveys conducted by the researcher, show that there has been a huge gap between urban and rural areas as well.