The Asymmetric Effects of Labor Force Growth on Economic Growth in Iran; New Evidence with Non Linear Approach

This paper surveys the asymmetric effects of labor force growth on economic growth in Iran. To this end, using two sectors Ram (1986) model and using threshold regression, we result that the labor force growth until the unemployment rate is less than 12% has a positive effect on economic growth, but labor force growth when the unemployment rate is larger than 12% has a negative effect on the growth.