Determinants of Unemployment Duration in Urban and Rural Region in Iran; A Non-Parametric Approach

Document Type : Research Paper

Authors

1 Department of Economics- University of Mazandaran

2 Faculty member of Economics Department, University of Mazandaran

Abstract

Unemployment as a socioeconomic issue has always been one of the most important concerns in every country especially in developing ones.  Regarding to the high level of unemployment particularly among women, young and higher-educated people and of course long duration of unemployment in Iran, considering unemployment duration is getting more important than before. In this paper, by using non-parametric approach in survival analysis the determinants of unemployment duration in urban and rural area in 2018. According to Kaplan-Meier estimator the probability of being unemployment in urban area is more than rural area. Women and young labor have the least chance to exit from unemployment pool. Also, gender gap in rural area is more than urban area. Among unemployed persons with university degrees, individuals having associate degree have the least unemployment survival probability. One more is that survival probability of individuals with unemployment insurance in rural area is more than without insurance. People who are the only unemployed person in their family have more chance to exit from unemployment spell. So, it seems that balanced development, consistency between university educations and labor market demands and needs, amending the rules of labor market due to reducing the gender gap and age of retirement are effective policies in order to reducing unemployment spells and its negative consequences

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References

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