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Drought as a covariate shock is one of the most frequently occurring natural disasters, which affects the livelihoods of many people, mainly in developing countries. Specifically, Iran has experienced very severe drought shocks in recent years that have affected millions of people.The information provided in this thesis may guide policymakers, in order for them to take and accelerate appropriate strategic decisions, which may help sustain and boost the income and livelihood securities of rural masses in Iran.However, while the education of children, to prepare them for off-farm employment, is the preferred strategy for farmers to cope with climate impacts, one-third of the farmers are not able to provide higher education to their children, especially to the girls.