Investigating the impact of active labor market policies on reducing the unemployment rate: the generalized torque approach

Subject Areas : Bi-quarterly Journal of development economics and planning

farajollah cheraghpoor ¹ , mahdi fadaeemahdi ^{2 *}

1 - حکیم نظامی
2 - Assistant ProfessorDepartment of Economics, Faculty of Management and Economics, Payame Noor University, Khorasgan, Iran

Received: 2024-07-10 Accepted : 2024-12-21 Published : 2024-04-09

Keywords: Employment, active labor market policies, inactive labor market policies, unemployment,

Abstract :

Using the GMM econometric method, this article examines the impact of active labor market policies as a percentage of GDP, inflation, tax gap, foreign direct investment and unemployment rate on reducing the unemployment rate using statistical data from Iran and The G20 member countries, which was collected as a panel data in the period from 2005 to 2022, and the estimation results of econometric models show that a 1% increase in the expenditure of active labor market policies reduces the unemployment rate by 0.031%, which It seems that this decrease in the unemployment rate due to a one percent increase in the expenditure of active labor market policies is less than the study conducted by Escadoro in 2018 in the study of the impact of active labor market policies on reducing the unemployment rate of OECD member countries and concluded that a 1 percent increase in expenditure The active policies of the labor market will be forced to reduce the unemployment rate by 0.38%. The researches conducted indicate that the costs of the active policies of the labor market in Iran (creating direct jobs, job search services, wage subsidies and training and skills training in the workplace) and..) are done, they can help the success of workers in finding and finding jobs and ultimately lead to the reduction of unemployment in Iran.

References:

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