Costs of Women's Employment: A Firm Perspective

Iranian women's economic participation rate is similar to undeveloped countries, while their educational achievements can be compared with developed countries. The aim of this article is to discuss some of the factors related to the situation. According to the policies of Third Development Plan, the rate of employment in government sector should decline and the opportunities for new employment is meager. At the same time, ineffectiveness and disadvantages of the informal sector, makes it unattractive to women with higher education. Therefore the study of costs affecting female employment in private sector is crucial. The article presents its discussion with the emphasis on costs to employers, as well as the costs to the society from a developmental perspective. A review of Labor Law provides information on; how Law as formal institution have been developed to protect women’s right for employment and informal institutions,(.cultural and social) have had impacts on it. With present Labor Law, the costs are imposed on the employers, and as the result women have lost the opportunities to work. Therefore a new approach is needed to distribute the costs between government and employers.