The unemployment-labor force participation linkage in Iran's women labor market

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Resumen/Abstract

During recent years, the long-run relationship between the unemployment rate and the labor force participation rate has been examined in depth in developed and developing economies. This paper explores this relationship for Iranian women in 31 provinces from 2005Q2 to 2019Q1. Using the time series cointegration approach, our findings show that in 25 provinces there is no long-run equilibrium relationship between female unemployment and participation rate. Furthermore, regarding the low power of the univariate cointegration approach, we consider a panel version of the cointegration tests developed by Westerlund (2006). The results of the panel cointegration test also reveal no long-run relationship between the two variables. Therefore, the unemployment invariance hypothesis is supported for the case of women in Iran.

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