A comparative analysis of the effect of economic cycles on the employment of cooperative companies in the economy of the Iran provinces

Objective:

One of the important issues for economists and politicians of the country is unemployment and employment indicators. The society, accumulation of small capitals, self-employment, and a kind of democracy from within the society, etc., are of great importance to Cooperative companies. Cooperative companies have greatly contributed to the economic progress of the country by creating employment and have followed economic growth. Firstly, in this study, will state the problem defining cooperative companies in general, and state their advantages and differences from non-cooperative companies. The rest of this part compares the durability and flexibility of these companies in the economic recession when unemployment increases and other companies remove their members or workers, these companies try to resist the economic recession and prevent the reduction of employment by keeping their members and reducing their profits, and therefore they are more resistant to these companies. Also, the various theories that are stated in the theoretical foundations section of this research, express different views on the type of effect of economic cycles and economic recession on the employment status of cooperative and non-cooperative companies. In this research, the comparison of the effect of the economic cycle on the employment of cooperative companies and the employment of all provinces of Iran was investigated. In the following, the existing theories about cooperative companies and employment and economic cycles were stated in order. In the next part, the effects of economic cycles on employment and the role of economic cycles were investigated and explained. Also, the internal and external backgrounds related to the subject of the research are stated below.

Method:

The research method of this study is the descriptive, analytical, and correlational research method using the panel data of Iran's Provinces during 1390-1401. Also, the variables and panel study model and variables include negative economic cycle, gross domestic product, employment of cooperative companies and employment of all provinces, inflation, gross domestic product, and economic growth, which has been collected for the provinces of Iran through the Iranian Statistics Center and the Ministry of Cooperation, Labor and Social Welfare of Iran. inferential statistics, especially regression analysis and panel econometric method, were used to analyze the data.

Results:

Next, in the results section, it first checked the mean of the variables using the method of Levin, Lin, and Chu, as well as the order of their accumulation, and expressed the results. All the variables are mean and stationary of zero level. It checked the panel estimation method in two steps once to check the employment of cooperatives that use F-limer and Hausman tests, respectively, it determined that the data is a panel and is based on the fixed effects method. It estimated the panel model with fixed effects. It analyzed the results, and using the coefficients obtained from the estimation, the R-squared coefficient, which was 0.8, showed the high determining power of the model, as well as the prob value, which was lower than 0.05. It showed the significance of the whole model and using Durbin Watson's test, it showed the correlation and its absence, and then it checked the normality test to check their residual normality. In the next step, it did the panel estimation for the employment of the provinces, using F-limer and Hausman tests, respectively, it determined that the data is a panel and the random effects method. Therefore, it estimated the panel model with random effects and analyzed the results, as well as using the statistics obtained from the estimation, the R-squared statistic, which was 0.7, It showed the high deterministic power of the model and also the value of prob, which lower than 0.05 and showed the significance of the whole model, and we showed autocorrelation and its absence by using Durbin Watson test, and in the continuation of the normality test, the data were expected and it showed the results in a graph. In addition, bankruptcy risks implemented by democratic companies help to aggressively reduce competition. In other words, the existence of competition is followed as long as it does not lead to the dismissal of its partners in the cooperative or considering that in times of crisis, by leaving the cooperative company and there is competition in the market, it is not possible to enter another cooperative company due to the solidarity of the members of the cooperative companies with each other, and therefore the possibility of leaving in times of crisis is reduced. Another advantage of this system is its potential to deal with the division of labor and reduce the degradation of work caused by expropriation of its conceptual content; In other words, in a cooperative company, considering that each person is both the owner and the workforce of the company, he works with more motivation and in times of crisis, he thinks less about reduction and more about reducing profit distribution. Also, it is the labor force that employs the capital, and by reversing the conflict between capital and labor, the issues of exploitation of the labor force to reduce production incentives are not raised (Sadeghi Amroabadi, 1401).

Conclusion:

In the end, it analyzed all the results and compared them with previous studies and came to the conclusion that according to the numbers obtained in the estimation of the two models in the business cycle coefficient was negative for both variables and the number obtained for the first model was lower. It was from the second model and it concluded that the effect of the negative economic cycle on the employment of cooperatives and the employment of the provinces was negative, but this negative effect on the employment of cooperative companies was less than the employment of the provinces, and it made suggestions to strengthen this issue. It also suggests legal and creative ways at the national and international levels to deal with the problem of capital constraints for cooperatives, including the creation and strengthening of non-bank financial institutions and opening up to new investors.