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

Mahbobeh Jahadi () and Zahra (Mila) Elmi ()
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Mahbobeh Jahadi: Ph.D. Student of Economics, University of Mazandaran
Zahra (Mila) Elmi: Professor of Economics University of Mazandaran

Quarterly Journal of Applied Theories of Economics, 2022, vol. 8, issue 4, 101-126

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

Keywords: Unemployment Duration; Duration Models; Survival Analysis; Non-parametric Approach (search for similar items in EconPapers)
JEL-codes: D00 J01 J64 (search for similar items in EconPapers)
Date: 2022
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