Job Finding and Inflow to Unemployment Rates for Iran's Economy

Search and matching theory has not been investigated quantitatively In Iran’s economy. In order to do this work, we provide estimations of job-finding rate and inflow to the unemployment rate for Iran’s economy. For the first step, we calculate the probability which an unemployed worker finds a job and also the probability which an employed worker loses his or her job. In the next step, we estimate the two rates which are mentioned with using the calculated probabilities. The data are quarterly, and the study period is from 1384-1 to 1393-2. We use Mathematica 5 for estimating these rates. Finally, we find that both rates are important in fluctuations of unemployment. Furthermore, the rates’ values are less than the values estimated for other countries.