:: Volume 13, Issue 4 (Fall 2018) ::
J. Mon. Ec. 2018, 13(4): 491-499 Back to browse issues page
Job Finding and Inflow to Unemployment: The Case of Iran
Malihe Hadadmoghadam 1, Jafar Ebadi1, Mohammad Hossein Rahmati2, Mohammad Saeid Shadkar1
1- University of Tehran, Faculty of Economics
2- Sharif University of Technology, Graduate School of Management and Economics
Abstract:   (651 Views)
In order to analyze the labor market through search and matching theory, we need deep parameters namely, rate of inflow to the unemployment pool and job-finding rate. In other words, these rates are primary parameters of matching function; hence, estimating these parameters is an essential step for the use of search and matching theory in every economy. In this paper, we estimate these rates of Iran’s economy using Simulated Method of Moments (SMM) as a baseline for future studies in this framework. We use the unemployment rate and the number of unemployed workers which were unemployed less than one month. We find estimates of around 0.1 and 0.32 for rate of inflow to unemployment and job-finding rate, respectively, which are lower than the amounts estimated for the United States and other developed countries. This is a sign of some labor market irregularities in Iran economy. For example, it shows that the probability of experiencing long-term unemployment/employment by unemployed/employed ones is high because of lower job-finding and inflow to unemployment rates.
Keywords: matching theory, labor market, unemployment, unemployment duration
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Type of Study: Original Research - Case Study | Subject: Macroeconomics
Received: 6 Feb 2019 | Accepted: 16 Oct 2019 | Published: 12 Nov 2019

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Volume 13, Issue 4 (Fall 2018) Back to browse issues page