Financing Job Guarantee Schemes by Oil Revenue: The Case of Iran

Levy Economics Institute Working Paper No. 527

20 Pages Posted: 7 Feb 2008

See all articles by Zahra Karimi

Zahra Karimi

University of Mazandaran (UMZ)

Date Written: January 29, 2008

Abstract

Iran's constitution emphasizes social justice and obliges government to provide a job for every citizen. But in fact, the government's duty to provide jobs has shifted to government support for a measure designed to create new employment opportunities through subsidized loans to the private sector. This policy has not been successful to date, and the current stock of unemployed workers is about three million - 12.75 percent of the country's labor force.

To realize the desire of the Iranian people to achieve full employment and social justice, the government must implement employment guarantee schemes, or EGS, in the most deprived areas. Elected town and village councils can design and manage the public works with the help of other government, as well as non-government, institutions. Programs can be financed using less than ten percent of the annual oil-exporting revenue that is deposited in the Oil Stabilization Fund.

Keywords: Job Guarantee, Full Employment, Iran, Employment Policies

JEL Classification: E51, E63, J01, J08

Suggested Citation

Karimi, Zahra, Financing Job Guarantee Schemes by Oil Revenue: The Case of Iran (January 29, 2008). Levy Economics Institute Working Paper No. 527 , Available at SSRN: https://ssrn.com/abstract=1087428 or http://dx.doi.org/10.2139/ssrn.1087428

Zahra Karimi (Contact Author)

University of Mazandaran (UMZ) ( email )

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