Evaluating the Concept of Disguised Unemployment and Investigating the Possible Existence of This Phenomenon in Iran's Economy

Hidden unemployment and labour hoarding are two different forms of unemployment related to the productivity of the workforce. Identifying the concepts of various forms of unemployment has an important role in the effictiveness of any employment-stimulating policies. This paper provides a comprehensive definition of hidden unemployment and labour hoarding. It studies micro and macro approach to analyze the phenomenon in Iran’s factory industries. In the macro section, a Hodrick- Prescott filter was investigated to find any evidence pertaining to the existence of this phenomenon in Iran’s economy during the period of 1997-2014. The results of the study reveal the existence of hidden unemployment and labour hoarding in Iran’s economy during both growth and recession periods.