Class Divide, Erosion of Public Welfare, and Structural Inefficiency/ By Fereshteh Goli
Social classes refer to structural divisions in society that categorize individuals or groups based on economic, social, cultural, and political factors. These divisions are typically shaped by inequalities in resources (wealth, income, education, occupation, and power) and influence social relations, opportunities, and individuals’ lifestyles. Social classes are defined based on various elements such as economy, culture, politics, and social relations. These characteristics not only affect individuals’ living standards but also influence their educational and occupational opportunities, as well as their mental health. The main features of each class are described based on classical sociological models (such as Karl Marx’s theory based on ownership and Max Weber’s multidimensional approach). It is important to note that in modern societies, these classifications are dynamic and can vary depending on the country and economic context. Therefore, social classes refer to broad groupings in a society whose members share similar conditions in terms of economic status, social prestige, and degree of power and influence. These classifications are generally based on criteria such as wealth, income, education level, type of occupation, and family background, and determine access to material resources and life opportunities.
Before delving into the main subject of this article and the impact of class disparity on access to resources and welfare facilities, let us briefly review the key features of social classes. The first feature is inequality, meaning that the core of the class concept lies in the unequal distribution of resources. The next feature is structural relations, which define classes in relation to one another—for example, the capitalist class versus the working class. Social mobility, meaning the possibility of individuals moving between classes (either upward or downward), is another feature, although the degree and possibility of such mobility vary across societies. Another aspect that divides social classes based on values, interests, consumption habits, and even behavioral and linguistic patterns is called lifestyle influence. Finally, there is collective identity, in which members of a class may develop a sense of shared belonging and identity.
Although class boundaries are not always precise, this classification is generally defined as follows:
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Upper class: includes large capitalists, industrialists, descendants of nobility, and the very wealthy—typically with inherited wealth.
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Middle class: This class is divided into various segments, including upper-middle (doctors, senior engineers, mid-level managers, university professors) and lower-middle (teachers, government employees, technicians, self-employed artisans).
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Working class: industrial laborers, construction workers, drivers, and service workers who generally live on daily or hourly wages.
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Poor or marginalized class: individuals who are unemployed or work in extremely low-income and unstable jobs, lacking job and social security.
Now that we have a basic understanding of the different social classes, let us define public amenities and public welfare. Public amenities refer to services provided by the state or public institutions for all citizens (regardless of income) to improve quality of life. The most important of these amenities in various countries—particularly in developed regions like the U.S., Europe, and parts of Asia—include: public green spaces and parks (urban parks, public forests, bike and walking paths), public libraries (free or very low-cost), public recreational and sports centers (public pools, sports fields, municipal gyms), public transportation (metro, buses, trams, commuter trains), public healthcare facilities (state hospitals, free or low-cost clinics, public vaccination), cultural centers (state museums, public theaters, free galleries), public education centers (state schools, low-tuition public universities), public childcare facilities (in countries like Sweden and Finland, nearly free), public eldercare centers, free public internet (Wi-Fi in parks, stations, libraries), public restrooms, drinking fountains, benches and street lighting, and other facilities typically funded through taxation and expected to be accessible to all.
Although these facilities are labeled public, in practice, there are significant class disparities in both access and quality of use. This disparity varies in degree across different countries. Let us first review the key factors that create these inequalities:
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Income and economic gap: Severe income inequality (high Gini coefficient) has enabled the wealthy class to access the best services, while lower-income groups are limited to basic or deteriorated services. High inflation and declining purchasing power have restricted access to many welfare services for middle- and low-income households.
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Geographical gap (center-periphery), such as the concentration of services in major cities: Cities like Tehran and other metropolises have far greater access to well-equipped hospitals, top universities, cultural venues, and public transportation compared to smaller cities, particularly rural and border areas.
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Deprivation in border provinces: Provinces such as Sistan and Baluchestan, Kohgiluyeh and Boyer-Ahmad, Kurdistan, and Ilam often rank lowest in human development indices and access to public services.
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Disparity in access to basic services, including education: The coexistence of elite private schools with extensive resources and under-resourced public schools has created a deep educational divide. Students in underprivileged areas often lack access to experienced teachers, well-equipped laboratories, and standard learning environments. The national university entrance exam further exacerbates this inequality, as admission to competitive fields is often dominated by students from privileged areas.
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Healthcare: Although the rural healthcare network was once effective, today there is a significant disparity in the quality of hospitals and medical centers between provincial capitals and other areas. Access to specialists in small towns and rural regions is extremely limited. High medical costs (even with insurance) remain a major barrier for low-income households seeking quality care.
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Housing and transportation: The housing crisis in major cities has forced low-income groups into informal settlements and deprived them of many urban amenities. Public transport networks (metro, BRT) are far more advanced in large cities than in smaller ones. Private car ownership—now a luxury for many families—limits access to jobs and services in major cities for low-income groups.
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Public and cultural spaces: Standard parks, cinemas, theaters, well-equipped libraries, and museums are largely concentrated in affluent and central areas of cities. The cost of using these spaces (such as cinema tickets) is usually high for low-income groups.
This disparity in access to public amenities has consequences. The first is the persistence of the poverty cycle. Children in deprived areas who lack proper education and healthcare have lower chances of obtaining good jobs in the future, thus continuing the poverty cycle. The next is the decline of social cohesion. Feelings of discrimination and injustice can lead to distrust toward governance systems and diminish social capital. This may also result in social unrest. Discontent with the unfair distribution of resources may manifest as local or nationwide protests. On the other hand, migration from deprived regions to major cities in search of better services has led to urban sprawl and created social and environmental challenges in large urban centers.
The class divide in access to public amenities in Iran is a structural issue, mostly reflected in economic, geographical (urban–rural), and income disparities. These inequalities appear not only in income distribution but also in access to public services like education, healthcare, housing, transportation, and basic infrastructure such as water and electricity. Statistical data indicate that the Gini coefficient (an index of income inequality) is higher in rural areas than in urban ones, limiting access to welfare for lower-income groups. Factors such as high inflation, economic sanctions, corruption, and the unequal distribution of subsidies have exacerbated this gap, placing poor households—often rural or urban fringe dwellers—at a disadvantage due to declining purchasing power and unequal access. In education, urban–rural inequality is pronounced: urban areas have better schools, more qualified teachers, and more educational opportunities, while rural areas suffer from lack of facilities, higher dropout rates, and lower quality education. This sustains the poverty cycle, as children from lower classes lack equal opportunities for advancement.
Studies show that literacy and higher education levels are significantly higher in cities, and this gap has widened in the decades following the revolution. In healthcare, inequality favors the wealthy. Catastrophic health expenditures disproportionately affect poor households, and the wealthy have easier access to private or specialized care. In rural areas, the shortage of healthcare facilities and specialists leads to higher mortality rates and delayed treatments. Informal payments further increase inequality, as the poor often lack access to public services. Housing and transport are also affected. In large cities like Tehran, the upper classes have access to well-serviced neighborhoods (e.g., northern Tehran), while migrants from rural areas and marginalized groups face informal housing and limited public transport. While urban coverage of utilities like gas and electricity approaches 100%, rural areas still experience gaps, accelerating rural-to-urban migration. The recent inflationary period has reduced purchasing power among middle- and lower-income groups and narrowed access to equal opportunities. To reduce this inequality, balanced investment in deprived areas, improved resource distribution, and anti-poverty policies are necessary, though domestic and external economic challenges remain major obstacles.
Let us also briefly consider gender inequality in public welfare—particularly in Iran—which stems from legal, cultural, and structural factors that limit women’s access to social services such as education, healthcare, social security, and public spaces. According to global reports, Iran ranked 143 out of 146 countries on the Global Gender Gap Index in 2024 (1), which affects equal access to public welfare. Women often face discrimination in the labor market, social security coverage, and support policies, while men have easier access to economic and social benefits. In education, progress has been made: women have higher university enrollment rates (over 50% of university students), but this has not translated into employment or economic welfare. The gender gap in youth employment and female labor force participation—13.4% compared to 67.3% for men (2)—limits equal opportunities and deepens inequality.
Healthcare also reveals disparities. While overall access to healthcare has improved, rural and marginalized women face a shortage of specialist services, domestic violence (reported by 17.6% of women), and higher medical costs. The gender equity index in health reflects a moderate score (0.496 in 2012) (3), but discrimination in service prioritization for pregnant or elderly women is evident. In social security and welfare, women are less likely to receive full coverage, especially for benefits like retirement, unemployment, and sick leave, due to discriminatory laws. Low female labor participation reduces their access to subsidies and government support, making them more dependent on family. Gender equity policy challenges in welfare—such as unequal resource distribution—impede justice.
Public spaces and housing are also affected. Urban design often overlooks women’s needs for safety and privacy, limiting their presence in parks, public transport, and recreational areas. In rural areas, women face limited access to basic services like water and electricity, reducing overall welfare. In general, gender inequality not only impedes economic growth but also restricts public welfare access for half the population. To reduce this, reforming discriminatory laws, increasing women’s participation in policymaking, and targeted investment in gender-sensitive services are essential—though cultural and economic barriers remain significant.
In conclusion, it must also be emphasized that sanctions have been a key aggravating factor in deepening class divides and should not be overlooked. By restricting access to international financial markets, reducing oil exports, and limiting trade, sanctions have directly impacted Iran’s economy. These factors have led to declining national income, currency devaluation (rial), and severe inflation. Inflation and reduced purchasing power have disproportionately affected lower- and middle-income groups and intensified poverty. Sanctions are not the only factor, however—domestic economic policies, resource mismanagement, structural corruption, and unjust wealth distribution have also significantly deepened the class divide. Iran’s oil-dependent economy causes income volatility and hinders long-term planning. Sanctions have sharply curtailed economic growth. When the economy does not grow, new jobs are not created and per capita income declines. High inflation and the devaluation of the rial have rapidly increased the cost of essential imported goods and raw materials, making life more expensive for ordinary citizens. Many individuals who once belonged to the middle class have fallen into lower-income brackets due to job losses, declining purchasing power, and depleted savings. Meanwhile, some individuals or entities with access to foreign currency or monopolistic positions have even profited from the crisis and increased their wealth. This has clearly widened the class divide. In fact, one could say that sanctions have been an extremely powerful “accelerating and intensifying factor” that has both severely reduced public welfare and deepened class disparity. But this impact has not occurred in a vacuum—it has been layered on top of Iran’s structural economic problems. The reality is that had the economy been more resilient and transparent, the country and its society might have endured the sanctions with less damage.
References:
1- World Economic Forum. (2024). Global Gender Gap Report 2024. Geneva: World Economic Forum.
2- “Female labor participation rate hits lowest in three years,” Donya-e-Eqtesad, July 11, 2025 (21 Tir 1404).
3- Hajnasiri, H., Ghanei Gheshlagh, R., Sayehmiri, K., Moafi, F., & Farajzadeh, M. (2016). Domestic violence against women in Iran: A systematic review and meta-analysis. BMC Public Health, 16(1), 752.
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