رضا روشن

This study investigates the employment of Iran’s industry sector by estimating the appropriate labor demand function. In this regard, the impact of factors such as value-added, capital and wages on the employment of industrial activities during the period 1383-1392 using the combined data of 23 industries (with two-digit ISIC Codes) has been investigated. Results show that the used variables in this study are non-stationary, but all together represent a long-term relationship that this indicates they are co integrated. The Long-term coefficients of demand function were estimated using DOLS method on the panel data and the results show that the added value and capital have a significant positive impact on the labor demand in large industrial of Iran. Findings indicate that one percentage increasing in the value added makes 0.56 increasing in the employment and 1% increasing in the capital stock causes 0.10 increasing in the demand for labor in these industries. On the other hand, effect of wages on the employment in industrial firms is negative and significant, but not considerable