An Analysis of the Determinants of Informal Employment in Urban and Rural Regions in Iran: Pseudo-Panel Data Approach

Informal employment typically poses many problems for communities and governments. For example, most informal workers face problems relating to poverty and economic insecurity due to the lack of a social security organization and labor law in the informal sector. Informal employment also has detrime...

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Main Authors: Shahryar Zaroki, Mastaneh Yadollahi Otaghsara, Arman Yousefi Barfurushi
Format: Article
Language:fas
Published: Allameh Tabataba'i University Press 2021-12-01
Series:فصلنامه پژوهش‌های اقتصادی ایران
Online Access:https://ijer.atu.ac.ir/article_13294_1d6e6b09c8fa75062a6eb08b0e2816a0.pdf
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author Shahryar Zaroki
Mastaneh Yadollahi Otaghsara
Arman Yousefi Barfurushi
author_facet Shahryar Zaroki
Mastaneh Yadollahi Otaghsara
Arman Yousefi Barfurushi
author_sort Shahryar Zaroki
collection DOAJ
description Informal employment typically poses many problems for communities and governments. For example, most informal workers face problems relating to poverty and economic insecurity due to the lack of a social security organization and labor law in the informal sector. Informal employment also has detrimental effects on governments, such as incorrect estimates of GDP and tax cuts. Accordingly, identifying the factors affecting informal employment will greatly help economic policymakers to control this phenomenon. This study attempts to examine the determinants of informal employment in urban and rural areas of Iran between 2013 and 2019. To this aim, applying the urban and rural household income-expenditure survey in the mentioned period, the share of informal employment in the total employment was calculated. Preliminary data processing illustrates that, on average, 45.1% of urban employees and 74.6% of rural employees are engaged in informal occupations. The results of estimating the research model indicate that employees' level of education and marital status have an indirect (favorable) effect on informal employment in urban and rural areas. There is also a U-shaped relationship between age and informal employment. At the same time, being a man in urban areas and being a woman in rural areas increase informal employment.
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spelling doaj.art-a23d800ef28d444bbb9b926edf49e4dc2024-01-02T10:30:13ZfasAllameh Tabataba'i University Pressفصلنامه پژوهش‌های اقتصادی ایران1726-07282476-64452021-12-0126899512910.22054/ijer.2021.60905.97913294An Analysis of the Determinants of Informal Employment in Urban and Rural Regions in Iran: Pseudo-Panel Data ApproachShahryar Zaroki0Mastaneh Yadollahi Otaghsara1Arman Yousefi Barfurushi2Associate Professor, Department of Economics, University of Mazandaran, Babolsar, IranMaster of Economics, University of Mazandaran, Babolsar, IranMaster of Economics, University of Mazandaran, Babolsar, IranInformal employment typically poses many problems for communities and governments. For example, most informal workers face problems relating to poverty and economic insecurity due to the lack of a social security organization and labor law in the informal sector. Informal employment also has detrimental effects on governments, such as incorrect estimates of GDP and tax cuts. Accordingly, identifying the factors affecting informal employment will greatly help economic policymakers to control this phenomenon. This study attempts to examine the determinants of informal employment in urban and rural areas of Iran between 2013 and 2019. To this aim, applying the urban and rural household income-expenditure survey in the mentioned period, the share of informal employment in the total employment was calculated. Preliminary data processing illustrates that, on average, 45.1% of urban employees and 74.6% of rural employees are engaged in informal occupations. The results of estimating the research model indicate that employees' level of education and marital status have an indirect (favorable) effect on informal employment in urban and rural areas. There is also a U-shaped relationship between age and informal employment. At the same time, being a man in urban areas and being a woman in rural areas increase informal employment.https://ijer.atu.ac.ir/article_13294_1d6e6b09c8fa75062a6eb08b0e2816a0.pdf
spellingShingle Shahryar Zaroki
Mastaneh Yadollahi Otaghsara
Arman Yousefi Barfurushi
An Analysis of the Determinants of Informal Employment in Urban and Rural Regions in Iran: Pseudo-Panel Data Approach
فصلنامه پژوهش‌های اقتصادی ایران
title An Analysis of the Determinants of Informal Employment in Urban and Rural Regions in Iran: Pseudo-Panel Data Approach
title_full An Analysis of the Determinants of Informal Employment in Urban and Rural Regions in Iran: Pseudo-Panel Data Approach
title_fullStr An Analysis of the Determinants of Informal Employment in Urban and Rural Regions in Iran: Pseudo-Panel Data Approach
title_full_unstemmed An Analysis of the Determinants of Informal Employment in Urban and Rural Regions in Iran: Pseudo-Panel Data Approach
title_short An Analysis of the Determinants of Informal Employment in Urban and Rural Regions in Iran: Pseudo-Panel Data Approach
title_sort analysis of the determinants of informal employment in urban and rural regions in iran pseudo panel data approach
url https://ijer.atu.ac.ir/article_13294_1d6e6b09c8fa75062a6eb08b0e2816a0.pdf
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