Dual Labor Market in Rural and Urban Areas of Iran

Abstract

  Spatial separation in terms of rural and urban areas has long been analyzed particularly in geographical literature; and in respect to economy, labor market could be assumed as one of the most important markets. Therefore, this study mainly aims at investigating development level of such a market in terms of separate rural and urban areas. To determine the development level of labor market, among many others, four indicators of ‘unemployment rate’, ‘defective employment rate’, ‘employment share in industry sector’, and ‘employment share in private sector’ during the implementation period of the Fourth Development Plan (2005-09) are taken into account; and the ‘technique of order preference by similarity to ideal solution’ (TOPSIS) is applied to model the indicators during the concerned period. Study results indicate a duality of labor market development level in rural and urban areas in favor of the latter as well as a progress of this distinction toward a greater divergence over time.

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