Study of the Relation of Minimum Wage on Poverty in IRAN

Document Type : Research Article



The Minimum wage is one of most important labor market policies in the world . Because one of the significant economical - social goals of governments is supporting workforce in order to maintain and improve the purchasing power and life welfare and job security of them using the minimum wage of leverage support . Because of the relationship between minimum wage and poverty line in economic context, this policy has been used as an important tool in the most of countries for alleviating of poverty. The main goal of this research is investigating the relation between minimum wage and poverty in economy of Iran through ARDL model in the period 1363-1387.The results show there is a negative relationship between minimum wage and poverty line in the economy of Iran.  Government could reduce the poverty rate by increasing minimum wage, if the inflation rate will be controlled by policy makers.