This study employs the pseudo‐panel approach to estimate returns to education among female headed households in Iran. Pseudo‐panel data are constructed from nine repeated cross‐sections for workers' females born during 1937–1981. To investigate the effect of education on earning, Mincer's Earning Function is estimated using pseudo-panel data model and maximum likelihood method.The Data is extractedfrom micro data of household surveyinrural and urban areas in 1991- 2012which covers298949 households. The results showed the positive effect of education onfemale-headed household's income.Alsothe rate of returnwas estimated 10 percent.