Document Type : ORIGINAL ARTICLE

Authors

• Mohammad Hossein Ehsanfar
• Abolghaseme Asna-Ashari Amiri
• Seyedeh Vajihe Mikaeeli

Abstract

The main aim of this research is investigating the relationship between unemployment and job vacancies and also the relationship between the number of job seekers and job vacancies in provinces of Iran. In other words, this paper seeks to obtain the Beveridge curve and Matching Function in provinces of Iran. Beveridge curve is an equilibrium relationship which equates unemployment input and output flows. Matching Function describes the equilibrium in the labor market and then shows the normal state of the country in the long run. Using panel data, this study has been done in 30 provinces of the country, in the years 2007 to 2011.
The results of the Matching Function have shown positive and significant relationship between job vacancies and job matching. Beveridge curve evaluation results are also consistent with theoretical foundations and have proven negative and significant relationship between unemployment rate and job vacancies. Job vacancies squared positive coefficient indicates convexity of Beveridge curve.

Keywords

• Labor Market
• Beveridge Curve
• Matching Function
• Panel Data
• Iran

Main Subjects

• Entrepreneurship