This paper analyses the extent and dynamics of inequality amongst the provinces of Iran. It reviews theoretical propositions for possible convergence and divergence and argues that, while the evidence from the more developed countries supports the case of convergence, the empirical evidence for developing countries is ambiguous at best. Straight and population weighted measures of inequality are used to see the evolvement of inequality amongst the provinces of Iran with respect to two indicators of income and consumption with a rural and urban break up. Polarization in distribution depicts a disturbing picture for urban areas and this is traced around a few proposed dimensions. The results reveal a close cluster of the provinces in Iran drifting behind the rest of the provinces.
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