Analysis of the Factors affectings on Youth Labor Supply  (Case Study of Iran)

Ghavidel, Saleh; Bahari, Fateme

doi:10.22096/esp.2012.26176

Analysis of the Factors affectings on Youth Labor Supply (Case Study of Iran)

Document Type : Original Article

Authors

Saleh Ghavidel ¹

Fateme Bahari ²

¹ Assistant Professor of Economics, Islamic Azad University, Firoozkooh Branch

² Master student of Islamic Azad University, Firoozkooh Branch

10.22096/esp.2012.26176

Abstract

The aim of this paper is to study the role of the factors affecting on youth labor supply during the period of 1961-2006 in Iran. The main question is to identify that whether the variables such as wages, income per capita, education, being married or single have different effects on various age groups of men and women or not? The findings show that the per capita GDP is the most important factor affecting to all age groups of youth labor supply. In the age group of 15-19, the wage has the least effect while it is relatively observed that men are more sensitive to wage changes than women, the effect of income per capita for women of this group is negative. This implies that increase in income per capita by improving in household income level causing the women to decrease their work participation rate. Also, the findings indicate that the coefficient of education among the women is greater than men and thus women are more interested in education. In the age group 20-24, the coefficient of the "Ratio of University Graduates" for both women and men are positive and the coefficient on income per capita, for women is lower than men. With increasing the age group (moving from 20-24 to 25-29) the effect of income per capita for women is rising. In the age group of 25-29, the coefficient of the "Ratio of University Graduates" for men is greater than women and the coefficient of marriage for women is negative. This indicates that women in this age group prefer the leisure to work and after getting married, and lower their participation rate in labor force.

Keywords

labor market

Youth Participation Rate

Labor Force

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