Investigating the Impact of Labor Market Risk on Urban Household Income in Iran

Mardoukhi, Hamid; Habibi, Fateh; Amani, Ramin

doi:10.22075/jem.2025.38287.2020

Investigating the Impact of Labor Market Risk on Urban Household Income in Iran

Document Type : Original Article

Authors

¹ M.Sc. Student, Department of Economics, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran

² Associate Professor, Department of Economic Sciences, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran

³ Ph.D. Candidate in Economics, Department of Economic Development and Planning, Faculty of Management and Economics, University of Tarbiat Modares, Tehran, Iran.

10.22075/jem.2025.38287.2020

Abstract

This study aims to investigate the impact of labor market risk on urban household income in Iran over the quarterly period from 2014 to 2024, using the DOLS method. The findings of the model estimation indicate that the labor market risk index has a positive and statistically significant effect on urban household income in Iran. This index—constructed from components such as educational attainment, job skills, hiring costs, and labor force availability—is defined in a way that higher values reflect lower risk and improved structural conditions in the labor market. The positive coefficient of this variable suggests that reducing uncertainties and enhancing institutional efficiency in the labor market—by providing stable employment opportunities and increasing human capital productivity—contributes to improved household income. Moreover, the results confirm the negative and significant effects of inflation and unemployment, as well as the positive effects of economic growth, quality of life, and female economic participation on household income.

Keywords