Study of the two-way Relationship between Health and Labor Productivity in Iran

Increasing the quality of labor is one of the most important factors in improving labor productivity. Also, improving the quality of labor can be achieved through improving the labor health. Accordingly, this study examines the two-way relationship between health and labor productivity in Iran.
This research is doing a causal-analysis by using Toda - Yamamoto and Johansen-Juselius methods over the period of first quarter of 1996 to fourth quarter of 2016 for the country of Iran. Also, the level of significant is 5 percent.
There is a two-way relationship between health and labor productivity. Also, one percent increase in privet health expenditure, increases the labor productivity by 0.67 percent. Accordingly one percent increase in the labor productivity lead to 1.48 percent increase in privet health expenditure.
Given the significant cross positive impact of health on labor productivity and vice versa, it is recommended that policy makers with increase health, improve labor productivity and also, with increase labor productivity, improve laber health.