Introduction: Income distribution is one of the most important concerns of governments. Thus, governments try to reduce income inequality in society. However, to tackle this issue, the main factors affecting income distribution should be studied.

  Method: In this paper, thus, the most influential macroeconomic variables on income distribution in Iran are examined. Using time series data of 1971-2007 and employing Auto Regressive Distributed Lag (ARDL), the main income distribution factors are reviewed and analyzed.

  Findings: The results have revealed that dynamic approach moves toward a long term model and the outcomes of the long term model show that an increase in the growth rate of real per capita GNP and in the share of agricultural value added in GNP will lead to a reduction in income inequality.

  Conclusion: However, increase in population growth rate and some events such as 1979 revolution and 8 year Iraq-Iran war have increased income inequality in Iran.

Introduction: Economic development and improvement in life quality is the main objective of all societies in all levels. To this end, it is necessary to have a better understanding of factors affecting individual life quality. Quality of Life Index (QLI) is a suitable tool that reflects socio-economic condition of a society. Thus, QLI can be employed as a major tool in local and national development plans. Human capital, however, has a vital role in life quality through which development is affected.

Method: In this paper, the relationship between human capital (represented by the graduated people in bachelors, master and PhD) and QLI in all Iranian provinces is studied. To this end, using time series data of all provinces during the period of 2003-2009, and employing fixed effect in panel data model, the effect of human capital on QLI of all provinces is examined.

Findings: The results show that human capital, adult literacy rate and urban population rate have positive and significant effect on QLI of Iranian provinces. However, population has a negative and significant effect on QLI of provinces.

Conclusion: The results show that human capital has a significant effect on economic growth and, therefore, on life quality of people. However, the number of postgraduates (master and PhD) has had more effects on life quality compared with graduates (bachelors). Thus, government is suggested to increase investments on higher education if it is to improve life quality of individuals in Iranian provinces.