In this paper, the effect of income distribution on divorce in Iran has
been investigated using micro data of Household Expenditure and Income
Survey of urban households in 2014 and applying the Quasi-panel data
method. Primary data included 18885 urban households. At first, sub-section
of the data were selected including divorced and married male and female
(16503 Households) and clustered in provinces. e data was then analyzed
based on the initial and categorized data. In the next step, using the Deaton
(1985) Quasi-panel data, Logit model is estimated with the Maximum
likelihood method. The results of first estimation indicate that household per
capita income reduces the probability of divorce, and the result of the
secondary model (the initial model with including the square of per capita
income) indicates a U shape effect of per capita income on the probability of
divorce. That is, the probability of divorce in the two groups of income (low
and high) is higher than the middle income holders. Threshold per capita
income is estimated equivalent to 1275 thousand Toman on average and
monthly for urban households or 5100000T in a month for a family of four in
2014. Also, having job reduces the probability of divorce. erefore,
unemployment reduction policies and supportive policies to reduce income
inequality in society will be a way to reduce the probability of divorce