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Female labor participation in Iran: a structural model estimation

Author

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  • Shadi Farahzadi
  • Mohammad Rahmati

Abstract

Purpose - The purpose of this study is to determine why female labor force participation in Iran has been less than 20 percent. Design/methodology/approach - The authors estimate a structural dynamic matching model of female participation using individual panel data in Iran. The study incorporates many factors such as wage, child cost, education, spouse employment and job market search parameters. Findings - The study finds that gender discrimination in job finding has the biggest effect in reducing the rate of women's participation. If all market differences disappear, the female participation rate will increase by 12 percentage points to almost 27 percent, which is still much lower than that of developed countries with the average of 60 percent. Originality/value - This study provides the first structural search model using a developing country's microdata to study female labor participation.

Suggested Citation

  • Shadi Farahzadi & Mohammad Rahmati, 2020. "Female labor participation in Iran: a structural model estimation," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(1), pages 1-19, March.
    • Handle: RePEc:eme:jespps:jes-10-2017-0276
    DOI: 10.1108/JES-10-2017-0276
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    Citations

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    Cited by:

    1. Firat Demir & Saleh S. Tabrizy, 2022. "Gendered effects of sanctions on manufacturing employment: Evidence from Iran," Review of Development Economics, Wiley Blackwell, vol. 26(4), pages 2040-2069, November.
    2. Salazar-Saenz,Mauricio & Robayo,Monica, 2020. "A Structural Model of the Labor Market to Understand Gender Gaps among Marginalized Roma Communities," Policy Research Working Paper Series 9398, The World Bank.

    More about this item

    Keywords

    Iran; Female labour force participation; Structural estimation; J64; C51; J71;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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