Volume 13, Issue 3 (2013)
QJER 2013, 13(3): 143-160 |
Back to browse issues page
1- Assistant Professor of Economics, Firoozkooh Branch of Islamic Azad University
(corresponding author).
2- MA in Economics, Social Security Organization
2- MA in Economics, Social Security Organization
Abstract: (7317 Views)
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.
Keywords: H55, E24, Real Wage, Social Security deductions, Employment
JEL Classification: J38, H55, E24
Received: 2010/12/14 | Accepted: 2012/07/25 | Published: 2013/08/23
| Rights and permissions | |
 |
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. |