Document Type : Research Paper
Authors
1
faculty of economics, kharazmi university
2
Master of economics, Faculty of economics, Kharazmi university
3
Faculty of Economics, Kharazmi University
Abstract
Coverage of unemployment through social insurance is one of the public policies to reduce the its social consequences. However, granting generous benefits for a long period of employment duration can according to job search theory have a negative impact on the unemployed’s motivation to reemployment and lead to a longer unemployment period.
paper examines the association between unemployment insurance and unemployment duration by pooling seasonal data from the Labor Force Survey of the Statistical Center of Iran for the years 2018 to 2022 (Persian calendar). Using this pooled dataset, the change in this relationship as a result of the Covid-19 pandemic was also assessed.
The research findings showed that women, singles, urban dwellers, young and educated people, ones who have left work due to reasons such as low income, dismissal, retirement, or illness, trainees, public sector employees, self-employed workers, people with low work experience, and people looking for a job in the service sector will experience a longer unemployment period on average, other factors held constant. In addition, it was found that in 8 provinces including Sistan and Baluchestan, Bushehr, Semnan, Yazd, Hormozgan, Alborz, East Azerbaijan, and Kerman, the average unemployment duration is longer than Tehran.
Regarding the main research question, the results obtained confirm a positive relationship between unemployment insurance and unemployment duration, such that unemployment beneficiaries have an unemployment duration of 1.453 months longer on average. Interestingly, the effect of unemployment insurance on unemployment duration reached 2.651 months during the pandemic and was exacerbated by about 1.198 months.
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