Investigating Unemployment Invariability Hypothesis in Iran's Provinces

This paper pursues the relation of economic participation effects on unemployment rate in Iran՚ provinces and unemployment invariability hypothesis test. For this, the data 2005-Q2- 2015-Q4 and single-equation different methods, equation system and panel data was used. The results show that in most provinces and also, in the country’ average, the mentioned hypothesis is confirmed due to short run shocks in economic participation; so, in order to decreasing long run unemployment rate, it needs to some changes in macroeconomic policy making and in labor demand too. It should be noted that labor supply changes have only short run effects in unemployment control.