This study analyses income inequality and poverty in the rural and urban sectors in Iran during the post Islamic revolution period, 1983-1993. It has been based on household level data relating to the Household Income and Expenditure Surveys conducted by the Statistical Centre of Iran for 1983, 1988 and 1993. The study starts with a brief review of the main features of the Iranian economy. This is followed by a brief discussion of the data. An analysis of temporal changes in income distribution and welfare, the contributions of factor income components on per capita income inequality, a detailed analysis of absolute poverty, earnings behaviour of full time urban male workers. The final chapter summarises and brings together the main conclusions. By and large, the finding of this study are quite rich and provide a very clean picture in the levels of income inequality, welfare and absolute poverty. Most of the changes in income inequality and poverty observed in this study seem to be, to some extent, the reflections, if not the outcomes, of government policies, strategies and war related activities and shortages etc. Based on the Iranian experience, we can say that political stability, accompanied by consistent and sustainable macroeconomic policies can ensure a reduction in income inequality and absolute poverty in a developing country. / Doctor of Philosophy (PhD)