Introduction
Generation Z (born 1997–2012), as the first generation of digital natives, has emerged within a global landscape defined by the intersection of financial crises, platform capitalism, and the hegemony of financialization. In Iran’s context, this digital entanglement carries a dual significance; for the Iranian adolescent, the virtual sphere is not merely a communication tool but a parallel public arena where physical and structural limitations are bypassed. Growing up in an “attention economy” where visibility serves as currency, Gen Z’s identity has become inextricably linked with market logic. Their economic actions are deeply embedded in late capitalism, where personal branding, lifestyle, and the ability to display consumption are as vital as consumption itself.
In Iran, this situation is exacerbated by structural blockages, chronic inflation, and institutional instability. While global discourse often frames Gen Z entrepreneurship as a luxury lifestyle choice, for Iranian youth, it represents a strategic defense and survival mechanism against the collapse of traditional employment models. Despite this complexity, existing literature often reduces Gen Z to either “under-socialized” profit-seekers (as seen in neoclassical economics) or “over-socialized” subjects following peer-group consumption norms (as seen in traditional sociology). This research seeks to move beyond these reductionist dualities by employing the concept of “embeddedness” (Granovetter, 1985; Zukin & DiMaggio, 1990) to explore how economic actions are articulated within the unique socio-economic lifeworld of Iranian Gen Z girls.
Methodology
This study adopts a qualitative-exploratory approach using directed qualitative content analysis. The field of study was purposefully selected: girls’ high schools in Baharestan, a transitional and peripheral urban area in Iran. Baharestan serves as a strategic site for studying the intersection of structure and action, as it reveals a sharp semantic shift from the importance of formal education to early employment.
The research utilized semi-structured interviews (individual and group) with 20 Gen Z female students (aged 15–17) engaged in various economic activities—ranging from online shops and beauty services to pharmacy assistance and teaching. Participants were selected through maximum variation sampling to ensure a breadth of experiences across diverse economic backgrounds. Data analysis followed a three-stage process: extracting meaning units, coding, and categorizing these codes into the three dimensions of embeddedness—structural, cultural, and cognitive—based on the theoretical framework of Zukin and DiMaggio (1990). To ensure trustworthiness (Lincoln & Guba, 1985), a range of strategies such as prolonged engagement, member checking, and expert peer debriefing were employed.
Findings
The findings indicate that Gen Z’s economic action is not an isolated, purely rational decision but is deeply embedded in three distinct dimensions: 1) Structural Embeddedness (Networks as Financial Shortcuts): Unlike traditional models that rely on family (strong ties), Gen Z economic action increasingly relies on “weak ties” and “links with strangers” in digital spaces. In the context of peripheral Baharestan, where family networks are often informationally redundant, weak ties act as vital bridges to non-redundant job opportunities. More importantly, the digital sphere connects these youth to global flows of information and wealth, allowing them to bypass traditional, stagnant economic hierarchies. Strangers in the digital world are viewed not as threats, but as economic opportunities that save the actor from normative rigidity; 2) Cultural Embeddedness (The Tool-kit of Capitalist Realism): Economic action is embedded in the values of late capitalism, where “capitalist realism” acts as a cognitive schema. Money is not just for material needs; it is “negotiation currency” used to shift the balance of power within the family and purchase the right to be different. A key finding is the emphasis on “self-made” wealth. In their logic, wealth derived from effort is “Smart Money” (prestigious), while wealth from connections or dependence is “Dependent Money” (stigmatized). This generation views the entrepreneurial self as a personal project where self-exploitation is embraced as a form of agency and self-actualization; 3) Cognitive Embeddedness (The Survival Schema and Strategic Patience): Due to chronic inflation and institutional mistrust, Gen Z has developed a “survival-based rationality.” The cognitive schema of “financial subjecthood” compels them to act as “portfolio managers” of their own lives. Interestingly, their individualism is not in conflict with family support; rather, they view the family as a “strategic partner” and a safety net. They invest in the family’s financial stability to ensure their own long-term survival. Furthermore, the research identified “strategic patience” as a significant finding: periods of “no income” (e.g., unpaid internships or skill-building) are not signs of passivity, but a conscious strategy to accumulate “identity capital” and protect their reputational brand from “low-status” or dependent wealth.
Conclusion
The research concludes that the economic action of Gen Z girls in Iran is an active articulation of agency within a landscape of structural insecurity. By shifting their embeddedness from physical geography to digital networks, they redefine the boundaries between the periphery and the center. Their economic behaviour is a continuous attempt to reconcile the two poles summarized in the title: “heart” (the search for meaning, identity, and digital self-expression) and “dollar” (the harsh necessity of survival in a volatile, financialized economy).
The study reveals that “selfhood” has become an ongoing investment project. The strict distinction they make between wealth from labour and wealth from dependent relationships indicates the emergence of a new value system where social prestige is tied to the narrative of autonomy. Ultimately, for Gen Z, profit is no longer defined by mere material accumulation; instead, it is found at the intersection of economic gain and identity credibility. This “status-based economic agency” serves as a proactive strategy to manage survival anxiety in a world where formal institutions have lost their protective function. Understanding this generation requires recognizing that their economic actions are not merely about “having” more, but about “being” someone—specifically, an autonomous subject in an unstable world.