Tax Uncertainty Effect on Employment in the Iranian Economy Sectors (1357-1383)

This paper looks at the effects of tax uncertainty on agriculture, industry and service sectors in Iranian economy. The trend of the main variables in this paper during the covered period are presented and analysed. The GARCH method is used to measure the tax uncertainty, and it is estimated by OLS. All the estimated coefficients had their expected signs and it is tax uncertainty effects on employment in all Iranian economy sectors are negative. Results suggest that the government should reduce tax income fluctuations to increase employment in all economic sectors.