Loading...

Analyzing the Effects of the Cash Subsidy Transfer on Labor Supply in Iranian Urban Households

Salim, Mohammad Javad | 2014

413 Viewed
  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 46421 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Fatemi Ardestani, Farshad
  7. Abstract:
  8. With the implementation of the targeted subsidy plan in Iran and as a result, the allocation of cash subsidy to individuals, the effect of this policy on labor supply behavior can be studied. In most of the researches, the degree of the effects of implementing such policies on the working behaviors is studied.
    In this research, after discussing some proposed models of labor supply and the effects of nonwage income on that, we reviewed the history of implementing such policies and their outcomes in different countries. Then, the possible methods of studying this issue in Iran were discussed. Finally, using a part of the household budget data in years 1389 and 1390, a panel data was created. In this study, the labor supply of a group of urban households in Iran, which took part in the plan in two years, was studied. After some refinements, deletions or rectifications of a part of the data that could disrupt the results, we used the ordinary least-squares on numerous different groups such as the position of the individual in the family, the type of annual income, and the age, to analyze the effects of different factors that could cause a change in the labor supply behavior. To conclude, what can be noticed in the results is that in accordance with the classical theories, individuals decrease their working hours in a response to a raise in their nonwage income which results in a change in the cost limits. The outcome of such social plans in Iran is 1.67 hours decrement in weekly working hours as a result of the cash transfer of one million Tomans annual nonwage income for an individual.
  9. Keywords:
  10. Cash Transfer ; Subsidy ; Annual Nonwage Income ; Working Hours Change ; Social Plans ; Household Size ; Household Budget ; Labor Supply

 Digital Object List

 Bookmark

No TOC