Volume 13, Issue 3 (2013)                   QJER 2013, 13(3): 143-160 | Back to browse issues page

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Mahmoudzadeh M, Sobhani S. The Effect of Social Security's Policies on the Wage and Employment in Iran. QJER. 2013; 13 (3) :143-160
URL: http://ecor.modares.ac.ir/article-18-7185-en.html
1- Assistant Professor of Economics, Firoozkooh Branch of Islamic Azad University (corresponding author).
2- MA in Economics, Social Security Organization
Abstract:   (5732 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.  
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Received: 2010/12/14 | Accepted: 2012/07/25 | Published: 2013/08/23

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