Estimation of Economic Sanctions Effects on Employment of Agricultural Production

The agricultural sector is one of the most important economic sectors in Iran’s economy which has a high share of gross national product. This sector has also a significant contribution to the country's employment and process of economic development. On the other hand, agricultural sector plays an important role in creating employment for villagers and it also prevent the acceleration of migration from rural areas to urban areas. Hence, identification of factors which affect labor demand in agricultural sector is of great importance. In order to investigate the effect of economic sanctions on employment of agricultural sector, first of all, we tried to use factor analysis method to create a new index for sanction to use in economic modeling. Then, the effects of economic sanctions on agricultural sector employment has been investigated using the simultaneous equation system method for the period of 1395-1355. According to the results, economic sanctions lead to increase in employment in agricultural sector.