Impact of Gender-Specific Unemployment on Economic Growth in Iran

Abstract

Unemployment is one of the most important economic and social challenges that can affect economic growth by reducing the utilization of labor force capacity, wasting human capital, and reducing potential output. Considering the significant differences in unemployment rates between women and men in Iran, examining the economic effects of unemployment with gender dimensions in mind can provide a more accurate understanding of its consequences for economic growth. Therefore, the present study aims to investigate the effects of male and female unemployment on Iran's economic growth. For this purpose, annual data for Iran from 1984 to 2023 have been used, and the effect of male and female unemployment rates on economic growth has been investigated using the Autoregressive Distributed Lag (ARDL) method. The results of the cointegration analysis reveal that, in the long run, male and female unemployment significantly reduce economic growth, with the effect of male unemployment greater than that of female unemployment. Accordingly, adopting employment-oriented policies with an emphasis on increasing labor absorption capacity, developing productive and sustainable job opportunities, and adapting labor market policies to the characteristics of male and female unemployment can, while reducing unemployment, lay the groundwork for more efficient use of human capacity and improved economic growth.