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Estimating the factors affecting labour demand in Iran's industrial sectorsector
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Ali Ajdari *   |
| ssistant Professor , a.a.ajdari@gmail.com |
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Abstract: (562 Views) |
The purpose of this article is to investigate the role of the structure of industries in their labour demand. The main questions raised in this article are what factors affect the level of employment and employment of labour in Iran's industrial sector and what is the role of structural characteristics in industrial labour demand? This issue was investigated using the econometric model of panel data using the data of 23 two-digit ISIC codes of industrial enterprises for the years 2011 to 2018. The findings of this article showed that the real wage did not have a significant effect on labour demand in Iranian industries. Also, the real interest rate of bank loans to the industrial sector is not significant as an indicator of the cost of capital at the probability level of 5% or 10%. Among the variables representing structural characteristics in industries, the ratio of added value to the number of enterprises, which is an indicator of the average scale of production in the industry per enterprise, has had a positive but small effect on the labour demand of industries. This shows that the industries that have a larger scale do not have a lot of job creation potential and this situation is also true for the ratio of investment per worker. The message of this article is that if the government's goal is to increase employment in the industrial sector, paying attention to small and medium enterprises compared to the policy of increasing the size of enterprises will probably have a greater effect on labour demand and industrial employment growth. Also, just creating economic growth or achieving industrial growth in Iran's economy cannot be expected to increase industrial employment.
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| Keywords: Labour demand, industry sector, panel data model |
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Full-Text [PDF 631 kb]
(154 Downloads)
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Type of Study: Research |
Subject:
Special
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