Regulations in Labor Market and its Effect on Productivity: Evidence from Iranian Industries

Author

Ph.D Student in Economics, University of Tehran

Abstract
Regulations making is one of the forms of government interventions in economy. Regulations can change business environment and hence employment, production and productivity. Labor Law is one of the important forms of regulations in Iran that was modified in 1369 in favour of labor. Some studies show that the reduction of labor demand in industry has been the outcome of this amendment. We estimate the labor productivity in the Iranian Industries using the fixed effect method. The results of current study suggest that the amended labor law has increased productivity of all industries but wood industry. 

Keywords


  • Receive Date 27 April 2016
  • First Publish Date 27 April 2016