The Effect of Productivity and Unemployment Rate on Wages in the Economy of Iran from 1971 to 2016: The ARDL1 Approach

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Karrari Samad; Ersungur Mustafa

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Journal: PRODUCTIVITY MANAGEMENT (BEYOND MANAGEMENT) Year:2019 | Volume:13 | Issue:50 Page(s): 151-173

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Title

The Effect of Productivity and Unemployment Rate on Wages in the Economy of Iran from 1971 to 2016: The ARDL1 Approach

Author(s)

Karrari Samad | Ersungur Mustafa | Issue Writer Certificate

Keywords

ARDL ModelQ1

ProductivityQ2

UnemploymentQ2

WageQ1

Abstract

The study of the relationship between Wage and macro variables of Productivity and Unemployment, as the link in employment economy, is of particular importance in the economy of Iran. The present study was conducted with the aim of offering a dynamic pattern for examining the effects of Productivity, Unemployment, training, and inflation on Wage rate between 1971 and 2016. To this end, the ARDL Dynamic Model, along with short-term and long-term methods and error correction model, was employed. The results of estimating the research model indicated both short-term and long-term relationships among the research variables. Moreover, inflation rate, Productivity and training were found to be positively and significantly correlated in such a way that an increase in training and Productivity was found to promote a parallel raise the work force rage. However, Unemployment was found to have a negative effect on the rate of workforce Wage. Besides, the obtained results of the error correction model used to analyze short-term and long-term relationship indicated an error correction coefficient of-0. 30. In addition, the current difference of Wage rate in the short run was found to be significantly affected by the current difference between Productivity of the workforce and the inflation rate but not by the current difference of training. Finally, the current difference of Wage rate was found to be negatively and significantly affected in the short run by the current difference of Unemployment rate.

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APA: Copy

Karrari, Samad, & Ersungur, Mustafa. (2019). The Effect of Productivity and Unemployment Rate on Wages in the Economy of Iran from 1971 to 2016: The ARDL1 Approach. PRODUCTIVITY MANAGEMENT (BEYOND MANAGEMENT), 13(50 ), 151-173. SID. https://sid.ir/paper/181827/en

Vancouver: Copy

Karrari Samad, Ersungur Mustafa. The Effect of Productivity and Unemployment Rate on Wages in the Economy of Iran from 1971 to 2016: The ARDL1 Approach. PRODUCTIVITY MANAGEMENT (BEYOND MANAGEMENT)[Internet]. 2019;13(50 ):151-173. Available from: https://sid.ir/paper/181827/en

IEEE: Copy

Samad Karrari, and Mustafa Ersungur, “The Effect of Productivity and Unemployment Rate on Wages in the Economy of Iran from 1971 to 2016: The ARDL1 Approach,” PRODUCTIVITY MANAGEMENT (BEYOND MANAGEMENT), vol. 13, no. 50 , pp. 151–173, 2019, [Online]. Available: https://sid.ir/paper/181827/en

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