The Effect of Social Security\'s Policies on the Wage and Employment in Iran

The impact of social security expenditure on the labor market (wages and employment) has been regarded in economic researches. This paper evaluates the short-run and long-run effects of social security expenditure on wage and employment using Autoregressive Distributed Lags (ARDL) approach during 19...

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Main Authors: Mahmood Mahmoudzadeh, Soheila Sobhani
Format: Article
Language:fas
Published: Tarbiat Modares University 2013-09-01
Series:پژوهشهای اقتصادی
Subjects:
Online Access:http://ecor.modares.ac.ir/article-18-7185-en.pdf
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author Mahmood Mahmoudzadeh
Soheila Sobhani
author_facet Mahmood Mahmoudzadeh
Soheila Sobhani
author_sort Mahmood Mahmoudzadeh
collection DOAJ
description The impact of social security expenditure on the labor market (wages and employment) has been regarded in economic researches. This paper evaluates the short-run and long-run effects of social security expenditure on wage and employment using Autoregressive Distributed Lags (ARDL) approach during 1979-2007. Our findings indicate that the insurance contribution deductions from the employees have negative impact on the real wage in both short-run and long-run and decrease their purchasing power. Moreover, employer's social security expenditure has a negative but insignificant effect on employment. In addition, labor productivity and economic growth are the main factors affecting the labor market.
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spelling doaj.art-f3488e5cd70345ca9cd3814422261e822023-06-15T20:41:10ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322013-09-01133143160The Effect of Social Security\'s Policies on the Wage and Employment in IranMahmood Mahmoudzadeh0Soheila Sobhani1 Assistant Professor of Economics, Firoozkooh Branch of Islamic Azad University (corresponding author). MA in Economics, Social Security Organization The impact of social security expenditure on the labor market (wages and employment) has been regarded in economic researches. This paper evaluates the short-run and long-run effects of social security expenditure on wage and employment using Autoregressive Distributed Lags (ARDL) approach during 1979-2007. Our findings indicate that the insurance contribution deductions from the employees have negative impact on the real wage in both short-run and long-run and decrease their purchasing power. Moreover, employer's social security expenditure has a negative but insignificant effect on employment. In addition, labor productivity and economic growth are the main factors affecting the labor market.http://ecor.modares.ac.ir/article-18-7185-en.pdfh55e24real wagesocial security deductionsemployment jel classification: j38h55e24
spellingShingle Mahmood Mahmoudzadeh
Soheila Sobhani
The Effect of Social Security\'s Policies on the Wage and Employment in Iran
پژوهشهای اقتصادی
h55
e24
real wage
social security deductions
employment jel classification: j38
h55
e24
title The Effect of Social Security\'s Policies on the Wage and Employment in Iran
title_full The Effect of Social Security\'s Policies on the Wage and Employment in Iran
title_fullStr The Effect of Social Security\'s Policies on the Wage and Employment in Iran
title_full_unstemmed The Effect of Social Security\'s Policies on the Wage and Employment in Iran
title_short The Effect of Social Security\'s Policies on the Wage and Employment in Iran
title_sort effect of social security s policies on the wage and employment in iran
topic h55
e24
real wage
social security deductions
employment jel classification: j38
h55
e24
url http://ecor.modares.ac.ir/article-18-7185-en.pdf
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