In contemporary Iran, women with higher education face both gender discrimination and an unfavourable economic system, one that is not conducive to employment-generation for women. This paper provides an analysis of women's access to higher education in Iran, which has varied over the last 30 years, and their continuously limited participation in the job market. Based on qualitative field research, this paper includes the voices of individual women, discussing their experience of higher education and factors they think are contributing to their limited choice of employment. The paper suggests that while the recent trend in negotiating "mehrieh" (a nuptial gift which is payable by the groom to the bride) has been a strategy employed by Iranian women to overcome some of the discriminatory laws they are subject to, this trend cannot actually be explained by the fact that women's employment opportunities are limited. The paper concludes by asserting that limited labour force participation for educated women is a consequence of both political economy and gender ideology. (Contains 9 tables and 21 footnotes.)