The Analysis of Relationship between Economic Reforms and Iranian Labor Market



This paper is analysing the role of economic reforms on the labour market in Iranian industry in economic reform period (1990-2005), and in turn, it is comparing it with closed economic period (1979-1989). In order to do the above comparative analysis, the manufacturing industry has been categorized based on Hecksher-Ohlin and Gause methodology. Accordingly, we have some industrial groups, including, export oriented, import competitor, non-trade, oil industries (in 3 and 4 ISIC, rev levels). The result shows that: open economic policies has increased the real wage, but has not declined the inequality between skilled and non-skilled labours. The growth rate of productivity of trade industries, the real production and the value added of those industries have increased considerably during 1990-2005 period. Employment elasticities and the share of women in industrial employment have also enhanced in that period.
JEL classification: E24, F14, F16