Salman Farajnia; Kowsar Yousefi; Mehdi Fadaee
Abstract
The natural rate of unemployment is affected by a variety of factors, including sectoral shifts. However, the inclusion of such factors is ignored in most of the researches. We employ standard deviation of sectoral employment as a proxy for sectoral shift, and use it to calculate the natural rate of ...
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The natural rate of unemployment is affected by a variety of factors, including sectoral shifts. However, the inclusion of such factors is ignored in most of the researches. We employ standard deviation of sectoral employment as a proxy for sectoral shift, and use it to calculate the natural rate of unemployment and the impact of unanticipated monetary policies on employment. The data is from the Labor Force Survey, 1384 to 1396. Results indicate that the sectoral standard deviation of employment has no significant effect on the unemployment rate. We interpret it due to the considerable share of permanent unemployment (those without any job in the past five years) in Iran's data with respect to seasonal unemployment. The permanent unemployment is about 40% in Iran while this number is 15% in the United States. Moreover, we find that the standard deviation of “job destruction” is negatively correlated with the unemployment rate. This might be due to less job destruction during the economic boom which causes the standard deviation to fall.
seyed mostafa hosseini; bijan baseri; gholamreza abbasi
Abstract
Immigration is one of main concerns of policymakers in situations of recession and low return on economic activities due to its impact on labor supply and pressure on unemployment. Over the past three decades, Iran has become a host country with a wide range of Afghan immigrants who have a long history ...
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Immigration is one of main concerns of policymakers in situations of recession and low return on economic activities due to its impact on labor supply and pressure on unemployment. Over the past three decades, Iran has become a host country with a wide range of Afghan immigrants who have a long history of mutual language, religion, culture, benefits and a common border, and are seeking to work in Iran. In this paper, the pathology of the arrival of Afghan immigrants and the intensity of the influx of immigrants on supply forces in Iranian labor market by using the ARDL model in the period 1979-2015 shows that increased immigration through the pressure on labor supply has led to an escalation of unemployment in Iran. Based on estimation results, the pressure of immigrants on labor supply was not such that wages would suffer a significant reduction in the labor market, and there was no significant relationship between immigrants and their wages in the labor market. The high correlation between the level of minimum wages and wages, the type of occupations of Afghan immigrants (mostly unskilled), the determination of wages based on the livelihood of workers, the time and area dispersion of migrants and their different capabilities are among the main factors that affect the relationship between immigrant labor supply and wages for the period under study.
Mohamad Reza Sadi; Mir Housain Mousavi
Volume 13, Issue 49 , July 2013, , Pages 177-198
Abstract
The aim of this paper is to study the factors and policies that affect employment in Iranian economy. To accomplish this purpose, ARDL dynamic model is applied to annual data during 1974-2007. By this method, the labor force demand in Iranian economy is estimated. The results show that in the short-run, ...
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The aim of this paper is to study the factors and policies that affect employment in Iranian economy. To accomplish this purpose, ARDL dynamic model is applied to annual data during 1974-2007. By this method, the labor force demand in Iranian economy is estimated. The results show that in the short-run, employment can increase by using the banking facilities and stimulating production. It is shown that in the long-run, the most important factor that can result in job creation is investment and the reason is that investment leads to economic growth and in this paper, it can be the leading factor of job creation. The size of the coefficients corresponding to employment in previous periods indicate low flexibility of labor market In Iranian economy and it is required to use proper policies and solutions to increase labor market flexibility in Iranian economy.
