Assessment of Employment Status in Fourth and Fifth Economic, Social and Cultural Development Plans
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Abstract:
Achieving a low unemployment rate has been the goal of all six post-revolutionary development programs as well as other major macro programs. However, the Iranian economy has experienced an average unemployment rate of 10 to 15 percent in recent decades, with no declining trend, so searching about the created employment is essential for proper future policy making. The present study analyzes the developments of Iranian employment during the fourth and fifth development programs (1995-2005) at the provincial level. For this purpose, the logarithmic mean Divisia (LMD) decomposition method is used and the net employment created in each province is subdivided into three effects including economic growth, technical coefficient and structural changes. This study has two conclusions: 1) Economic growth during the fourth and fifth development programs played a significant role in provincial employment changes, so pursuing growth-oriented strategies – in comparison to survival-oriented strategy and short-term employment policies – could be a more desirable goal. 2) The role of structural changes in increasing or decreasing employment is not significant, and in addition, there is no conclusive evidence on job creating or job reducing of a sector. As a result, instead of the inclusive version of development with priority of one sector (agriculture, industry or service), acting on the sub-sectoral benefits of provinces that will ensure sustainable growth is a better approach.
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Journal title
volume 27 issue 92
pages 7- 43
publication date 2020-03
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