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