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.

In the early years of 1960s, Schultz and Denison introduced the concept of HUMAN capital. Since then economists have analyzed the role of HUMAN capital on various ECONOMIC variables. Education, experiment, and health are three main dimensions of HUMAN capital among which education is considered as the most important one. The EDUCATIONAL dimension of HUMAN capital is known as EDUCATIONAL attainment.In this paper, after introducing different indexes, which have been used for EDUCATIONAL attainment, we argue that average years of schooling is the most important index of EDUCATIONAL attainment. By reviewing Barro's method for calculating average years of schooling, and implementing essential changes needed for consistency with the Iranian EDUCATIONAL system and the data, we develop a method for calculating the average years of schooling in Iran. We calculate average years of schooling of men and women, and also for four EDUCATIONAL levels (elementary, guidance, secondary and higher education) for the period 1961 to 2001.

This research examines the relationship between EDUCATIONAL attainment and EARNINGs in the context of HUMAN capital theory in the urban regions of Iran in (2003- 2004). using a sample of 12636 male and female workers clustered within 28 provinces, multilevel statistical techniques was employed to evaluate the contribution of education to EARNINGs. Applying a multilevel method of analysis for investigating of the above relationship is the advantages of this paper.The multilevel analysis showed that data used are affected (a little) by a hierarchical of clustered, and the relationship between HUMAN capital variables and EARNINGs varies (a little) across the providences. By treating individual province as a second level units of analysis, it has been shown that the rate of the differences in the EARNINGs can be attributed to the provinces in which individuals are working. According this study, in the Iranian urban area, the levels of education, the experience in terms of years and gender of employees is significantly associated with their EARNINGs.

Introduction: Higher education effects national ECONOMIC growth and development in three perspective: 1-HUMAN capital formation 2-consumption 3-postive externality effect.Materials and Methods: Around the world there are many researches in developing countries about these effects on development and growth. This paper investigates the effects of higher education curricula and academic disciplines on the labor force and thus on ECONOMIC growth and growth of value added of ECONOMIC sectors (industrial, agricultural and service) in Iran over the 1978-2007 periods. In order to survey above material we used an ECONOMIC growth model, and estimated it with econometric methods.Results: Results reveal that higher education overall provided a positive and significant effect on Iran's ECONOMIC development and that engineering and agricultural science played the most prominent role in this process. Conclusion: In order to get higher ECONOMIC growth, allocation of resource to higher education specially engineering group is important.