Objective : Increasing social welfare and reducing poverty are to ensure the well-being of all classes of a society. Cities and villages are distinguished by cultural and economic disparities. The purpose of this study was to develop and present a comprehensive model on welfare and wealth components and their relationship with each other , as well as determining the contributing factors and variables affecting them by presenting a comprehensive model. Results : The Structural Equation Modeling ( SEM ) method was used to analyze the data and investigate the causal relationship of latent variables. Observed variables and latent variables of the model were analyzed and tested by using AMOS and SPSS (version 21) statistical methods, in two exploratory and confirmatory steps. Wealth and welfare were identified as two separate subjects in the conceptual model and in the final structural model for rural households. Unlike, in the urban community, they were recognized as a single category in the final structural model. The results of this study can provide the clear hints for effective policy making to break the cycle of deprivation and poverty in Iranian rural and urban population.

Background Increasing social welfare and reducing poverty are to ensure the well-being of all classes of a society. Cities and villages are distinguished by cultural and economic disparities. The purpose of this study was to develop and present a comprehensive model on welfare and wealth components and their relationship with each other, as well as determining the contributing factors and variables affecting them by presenting a comprehensive model. Methods The components of wealth and welfare were determined based on the national data comprising 19261 rural and 18701 urban household participants. Initially, the conceptual model was drawn. Later, observed and latent variables of the model were analyzed and tested using AMOS software, in two exploratory and confirmatory factor analyses. Finally, the Structural Equation Modeling was used to analyze the data and investigate the causal relationship of latent variables. Results The findings showed that the factors generating wealth in the urban initiate from education and lead to employment and then into income and ultimately provide wealth and welfare. Plus, there is no separation between the concept of welfare and wealth in urban society. However, land ownership is the prerequisite for wealth and welfare issues in a rural community. Moreover, wealth and welfare are two distinct phenomena in rural areas. Conclusions The results of this study would provide the clear hints for effective policy making to resolve deprivation and poverty in Iranian rural and urban populations, prioritizing education for urban and land ownership for rural areas.