The Effect of Productivity and Unemployment Rate on Wages in the Economy of Iran from 1971 to 2016: The ARDL Approach
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...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
Islamic Azad University, Tabriz Branch
2019-11-01
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| Series: | مدیریت بهره وری |
| Subjects: | |
| Online Access: | http://jpm.iaut.ac.ir/article_668696_db639a0cfc023aece268a1482ae17066.pdf |
| Summary: | 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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| ISSN: | 2716-9979 2476-7298 |