Net Job Creation and Its Effective Factors in Iranian Manufacturing Industries

According to the Islamic Republic of Iranchr('39')s 20-years plan in the outlook 1404, achieving to the "full employment" has been considered as one of the most important economic features of Iran. However, the existing evidences suggest that the employment problem is still a critical topic in Iranchr('39')s economic issues. A part of it is because of Iranchr('39')s economy hasnchr('39')t created predicted jobs subject to predicted goals in Development Plans. In addition to the inability of Iranchr('39')s economy in creating predicted jobs, a major parts of employment rates have been destructed during each plan. Therefore net employment created, of what is called "net-job creation" in economic literature, is far less than predicted amounts for Iranchr('39')s economy and hence its effect is manifested in high unemployment rates. With this approach, the present study aims to take a step toward achieving the goals of future outlook plan –full employment- by investigating net employment in Iranchr('39')s manufacturing industries and identifying and evaluating the factors affecting them. To do this, the manufacturing industries data in terms of ISIC 2-digit codes has been collected from statisticed center of Iran (SCI) during 2000-2014 (3th, 4th, and 5th Development Plan) .Also, net job creation in selected industries are significantly influenced by the combination of size and ownerships of the firms, capital intensity and investment growth, entry rate and industry growth, industry structure, technology level, profitability, productivity, wages and salaries, skill levels and gender compositionry employment, and paid taxes. Therefore and in terms of policy point of view, these results demonstrate that creating industrial employment is not a random phenomenon, and the fluctuations of industrial employment can be control by identifying the factors affecting that.