Human capital is one of the most effective factors in personal income, and it is built up in individuals by educational attainment.
Theoretical economic growth models, such as those presented by Lucas(1988), Becker, Murphy, Tamura (1990), L.Y.Lau, F.Louat, D.T.Jamison (1996),Rebelo (1992),Mulligan and Sala-I-Martin (1992) have addressed various aspect of this issue. Human capital has been defined as the educational attainment which is achieved during the years of education. Barro-lee (1995),Viktam Nehru, Eric Swanson, and Ashutosh Dubey (1995) started analyzing and measuring human capital. In the present research, the authors, trying to follow the methods of economics researches, considered formal education as an index for human capital. It was argued that in it for human capital is accumulated also through learning by doing, thus individual experiment could be individually defined as a proxy for it. In the other hand, due to job segregation and discrimination, gender might be an effective factors in income difference, thus it was also included in the present model.
Using Mincer's personal earning function, with certain adaptations Iranian economy, the authors studied such effects on both rural and urban households during the years 1984-2000. The results indicated that an individual's income is not only influenced by human capital but also by gender.