the effects of changes in macroeconomic variables on the determination of salaries and wages in Iran

Subject Areas : Financial Economics

Nazi Mohammadzadeh Asl ¹ (member of economic faculty)
Nazser Khani ² (Master of Economics)

Received: 2023-01-23 Accepted : 2024-05-27 Published : 2024-07-10

Keywords: Real wage, labor market, housing price index, literacy rate, services sector.,

Abstract :

Determining the minimum salary is considered as one of the most important changes in the labor market, and the labor force from the newly arrived labor force and the experienced labor force demands to receive a fair salary in order to have sufficient motivation to provide services. For this reason, the government determines one of the salaries, because I understand that it must determine a level of salary that guarantees the personal security of their work and their families. What is clear is that in Iran's economy, which has always been involved in high inflation, the level of wages has increased in line with inflation. therefore, in this research using the VAR model, the question has been raised as to whether changes in other variables, such as in the macroeconomic sector of the economy, have had an effect on wages or not. The variables used are the share of employees in the service sector, the added value of the service sector, the literacy rate of adults and the housing price index. The investigated time period is 1370 to 1399. The results of the model showed that practically none of the changes in the macroeconomic variables of the country had an effective contribution in determining the minimum salary and the process of determining the minimum salary is a repetitive process without considering the macroeconomic indicators