The Effect of Retirement Motivation Index on Youth Unemployment

Since the population pyramid structure of Iran shows the aging of the country's population, in addition to youth employment policies, attention should also be paid to the incentive system for the elderly. In this regard, the most important related researches were identified and their methods and variables were reviewed and categorized in order to provide a model for identifying factors affecting youth employment in Iran. Also, the most possible, most important and necessary variables have been selected. Then, using the micro data of the pension organization, the retirement motivation index was calculated seasonally for the economy of Iran. The estimation of the model showed that although the retirement motivation index has a positive and significant effect on youth employment, but the intensity of this effect is very low compared to other factors. In other words, premature retirement of the elderly cannot be considered as an important factor for the employment of young people. In fact, the policy maker can pursue the goal of reducing youth unemployment by influencing other variables affecting youth employment. Since the implementation of different policies can have precarious consequences, the best policy should be adopted and implemented in accordance with the conditions of each country.