Study the Factors and Policies Affecting Labor Employment

Considering the issue of unemployment and recession in recent years, the year 2017 was named "Resistance Economy, Production-Employment" by the Supreme Leader. Therefore, employment is one of the key indicators of resistance economy. In this regard, evaluating labor employment patterns, in order to identify the factors affecting it, is the most vital challenge for the implementation of the resistance economy. This research first presents general concepts and examines the theoretical foundations and literature of the factors affecting the resistance economy index (labor employment) and then by referring to variables such as minimum wage (policy-making variable), real GDP, real oil revenues, capital stock, foreign direct investment, and degree of business openness, attempts to explain the resistance economy index. The model estimation has been carried out by Autoregressive Distributed Lag (ARDL) method, and the Vector Autoregressive (VAR) model has been used to investigate the shocks for annual data of 1980-2015. The results showed that in the short run, GDP, capital stock, oil revenues, foreign direct investment and trade openness have a positive effect on the resistance economy index. However, the minimum wage with a lag period has a negative and significant effect on the index, which also holds true for the long term. Finally, it has been shown that the adverse effects of some shocks on resilience economy index will remain for many years to come.JJEL Classification: C22, E24, J21, J24, J54, M51