ROLE OF THE TRADE LIBERALIZATION ON LABOR MARKET, EMPLOYMENT AND THE ESTIMATING OF LABOR DEMAND FUNCTION IN IRAN

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KOMIJANI AKBAR; GHAVIDEL S.

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Journal: ECONOMIC RESEARCH REVIEW Year:2006 | Volume:6 | Issue:1 (20) Page(s): 13-41

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Title

ROLE OF THE TRADE LIBERALIZATION ON LABOR MARKET, EMPLOYMENT AND THE ESTIMATING OF LABOR DEMAND FUNCTION IN IRAN

Author(s)

KOMIJANI AKBAR | GHAVIDEL S. | Issue Writer Certificate

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Abstract

This paper intends to study the effects of trade liberalization on the labor market structure in Iran. While there exist studies with different findings in this context, but most of them face a common result which indicates that the impact of trade liberalization both on the employment and wage rate of skilled labor is positive whereas in regard to the unskilled labor the effect is either negative or insignificant. Also, the short-run and the long-run impacts of the trade liberalization on employment are different. In this paper attempt is made by relying on the theoretical basis of the labor market as well as the result of the previous studies, the demand function for skilled and unskilled labor force, both with GDP and non oil GDP to be estimated. In estimated demand functions, to the issue of stationary in time series variables and testing the model with ARDL method and the degree of openness in the economy have been taken into account. The long-run estimated labor demand function during the period 1350- 1383 does not indicate any effects from trade liberalization, but in the short run labor demand function a significant role for trade liberalization is realized and its impact on the employment of skilled labor is larger than the unskilled labor. Also, the findings of this study indicate that the degree of economic openness has larger effects both on the skilled and unskilled labor demand in the short-run while the non oil GDP is considered.

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APA: Copy

KOMIJANI, AKBAR, & GHAVIDEL, S.. (2006). ROLE OF THE TRADE LIBERALIZATION ON LABOR MARKET, EMPLOYMENT AND THE ESTIMATING OF LABOR DEMAND FUNCTION IN IRAN. ECONOMIC RESEARCH REVIEW, 6(1 (20)), 13-41. SID. https://sid.ir/paper/404732/en

Vancouver: Copy

KOMIJANI AKBAR, GHAVIDEL S.. ROLE OF THE TRADE LIBERALIZATION ON LABOR MARKET, EMPLOYMENT AND THE ESTIMATING OF LABOR DEMAND FUNCTION IN IRAN. ECONOMIC RESEARCH REVIEW[Internet]. 2006;6(1 (20)):13-41. Available from: https://sid.ir/paper/404732/en

IEEE: Copy

AKBAR KOMIJANI, and S. GHAVIDEL, “ROLE OF THE TRADE LIBERALIZATION ON LABOR MARKET, EMPLOYMENT AND THE ESTIMATING OF LABOR DEMAND FUNCTION IN IRAN,” ECONOMIC RESEARCH REVIEW, vol. 6, no. 1 (20), pp. 13–41, 2006, [Online]. Available: https://sid.ir/paper/404732/en

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