Document Type : Research Paper
Authors
1 Master's degree, Department of Economic Development and Planning, Faculty of Economics, Allameh Tabatabai University, Tehran, Iran
2 Department of Economic Development and Planning, Faculty of Economics, Allameh Tabatabai University, Tehran, Iran
3 Associate Professor of University of Allameh Tabatabai,Economic department
Abstract
A major reason for pushing people towards informal jobs is the motivation of necessity. In fact, informal employment is a kind of survival strategy for those who have no other way to earn money and support themselves and their families except by working in these types of low-paid jobs. At the level of development, the continuation of this trend affects the economic competitiveness and the quality of life of the citizens, and the foundation of national production and technological and innovative production faces serious limitations. the purpose of this article is to investigate the effect of household poverty along with other socio-economic factors on informal employment in urban areas of Iran in 2019. For this purpose, by using the detailed data of the expenditure and income plan of urban households, first, the poverty line was calculated based on the absolute poverty approach for urban areas and poor households were identified. Then according to the index presented in this research, the type of employment of households was determined in terms of formal and informal. The results of estimating the research model using the two-stage Heckman Probit method indicate that household poverty leads to a significant increase in informal employment, so that with an increase in poverty, the probability of being informally employed increases by 0.57. The strategic message of this study is that the problem of poverty and informal employment in Iran can be overcome only by upgrading the technological production base and creating value-creating capabilities based on increasing productivity.
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