the survey of quantitative effect in human capital on the economic growth and household welfare in rural and urban areas: a structural path analysis approach

background: because of the close relationship between economic growth and welfare of the societies many economists have been seeking to identify the sources of economic growth. human capital through enhancing workforce skills and quality, increases the amount of workforce income which consequently leads to economic growth. methods: this study is based on data from the social accounting matrix of iran in 2006 and is performed using structural path analysis. the study population is comprised of all iran’s economic sectors and households. simsip_sam software was used to analyze the data. results: a billion rial increases in human capital would lead to income increases which are: 0.087 in energy, 0.083 in services, 0.082 in agriculture, 0.064 in industry sector, and 0.052 billion rial in mining sectors. among households' quintiles, the urban fifth quintile, with 0.15 billion rial increase, is the most affected by human capital growth. in whole, household income showed 1.23 billion rial increase. conclusion: the development of human capital increases households’ quintile income almost equally. thus these increases would prevent the increases of class differences and makes adjustments to it. hence, increasing free provision of health and education services increase household welfare, economic growth and economic development.