The Effect of Human Assets on Employment in Iran

The paper aims to examine the effects of human assets on employment in Iran from 1990 to 2019, according to the importance of employment in improving economic welfare and the policymakers’ emphasis on job-creating. For this purpose and to analyze the relationship between variables, the ARDL bounds test of Pesaran et al. (2001) and the simultaneous equations system were used. The results showed that human assets have a positive and significant impact on employment; in this way, the increase in human assets leads to an increase in economic growth, which in turn leads to a rise in the demand for labor and, of course, employment. In fact, human assets are the combination index of the three components of education, health, and nutrition. Investing in human assets enhances levels of skill, expertise, worker productivity, and increases the efficiency of the labor force in applying new technology.