Estimation and Simulation of Labor Demand Function in Iran

Subject Areas : Futurology

Akbar Komijani ¹ , Samad Karimi ²

1 - ندارد
2 - ندارد

Received: 2015-02-21 Accepted : 2015-02-21 Published : 2000-12-21

Keywords:

Abstract :

The theoretical literature of employment and unemployment and the role of the influential factors on labor market issues have been discussed by various economic schools of thought including; Classicals; New Classicals, Keynesians; New Keynesians as well as the view of the proponents of the real business cycle theory. Classical and new classical economists view that the real wage level and the real business cycle theory consider supply side factors as major determinants of labor demand. While, Keynesians and Keynesians economists emphasize on the role of demand management policies. New Keynesians explore the real wage rigidities in line with theories of “ menu cost” , “efficiency wage” and “insider-outsider”. The trade- off between wages and unemployment in the Phillips curve and the “NAIRU theory”, attempt to identify the differences between the actual rate of unemployment from that of NAIRU rate and also factors affecting it. This study presents the above mentioned approaches with a review on empirical studies on employment and unemployment in Iran and other countries. The methods utilized in this study