The Effects of Economic Shocks on Labor Market in Iran

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MOHAMMADI HAMID; Karim Mohammad Hosein; Hashemi Samare Khadije; SARGAZI ALIREZA

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Paper Information

Journal: JOURNAL OF THE MARCO AND STRATEGIC POLICIES Year:2019 | Volume:7 | Issue:2 (26) Page(s): 268-285

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Title

The Effects of Economic Shocks on Labor Market in Iran

Author(s)

MOHAMMADI HAMID | Karim Mohammad Hosein | Hashemi Samare Khadije | SARGAZI ALIREZA | Issue Writer Certificate

Keywords

EfficiencyQ2

WageQ1

Structural vector error correction modelQ1

Labor forceQ2

Abstract

The labor market is one of four major markets in the economy; it is important because of its unique features. In the present study, the long-term effects of various macroeconomic shocks on the unemployment rate have been investigated from 1974 to 2016 using the Structural vector error correction model (SVECM). Based on the estimated equation, the real Wages have a direct relationship with Efficiency and employment and an indirect relationship with the unemployment rate. Impulse response analysis showed that among the shocks, Efficiency and supply shocks have a more substantial impact on unemployment so that the Efficiency shocks reduce the unemployment rate in the long run and the positive labor supply shock leads to higher unemployment. According to the results of unemployment forecast of error variance decomposition, the shock of labor supply, Efficiency, and labor demand are determinant factors of unemployment in the long run. But the most critical factor in unemployment is the supply shocks that their effect increases over time.

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APA: Copy

MOHAMMADI, HAMID, Karim, Mohammad Hosein, Hashemi Samare, Khadije, & SARGAZI, ALIREZA. (2019). The Effects of Economic Shocks on Labor Market in Iran. JOURNAL OF THE MARCO AND STRATEGIC POLICIES, 7(2 (26) ), 268-285. SID. https://sid.ir/paper/414394/en

Vancouver: Copy

MOHAMMADI HAMID, Karim Mohammad Hosein, Hashemi Samare Khadije, SARGAZI ALIREZA. The Effects of Economic Shocks on Labor Market in Iran. JOURNAL OF THE MARCO AND STRATEGIC POLICIES[Internet]. 2019;7(2 (26) ):268-285. Available from: https://sid.ir/paper/414394/en

IEEE: Copy

HAMID MOHAMMADI, Mohammad Hosein Karim, Khadije Hashemi Samare, and ALIREZA SARGAZI, “The Effects of Economic Shocks on Labor Market in Iran,” JOURNAL OF THE MARCO AND STRATEGIC POLICIES, vol. 7, no. 2 (26) , pp. 268–285, 2019, [Online]. Available: https://sid.ir/paper/414394/en

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