Estimating the Employees of the Provinces and Analyzing the Effect of Ease of Doing Business on it by Emphasizing the Characteristics of the Provinces

Considering the importance of employment and analyzing factors influencing it in economy, the current study estimated the number of employees working for 10 years or more in 31 provinces in Iran. Employing descriptive-analytical research method and econometric technique, the current research analyzed the role of Ease of Doing Business (EDB) index over the years 2016-2019. The findings suggest in both 2016 and 2019 there is a positive correlation between employment and EDB index, which has also been proved by other criteria including the rate of employment and industrialization of provinces. Furthermore, given the level of development of provinces (from underdeveloped to developed), while the EDB index of more developed provinces decrease, the number of employees in these provinces increase. The results of basic framework and its 6 following scenarios indicate that improving EDB index has a positive effect on employment in provinces. Moreover, in provinces which have a lower unemployment rate or are more industrialized, the EDB index has a lesser effect on employment. This is while the size of this effect is larger in provinces which enjoy a more favorable EDB index. Another finding of the study suggest that as the level of development of provinces increases from underprivileged to developed ones, the rate of effectiveness of EDB index on employment decreases. Finally, the price level has a negative impact on employment, and the rate of economic participation and bank facilities have a positive effect.