Impacts of Skilled Labor Migration on Macroeconomic Variables in Iran: Using a CGE Model

Document Type : Original Article


1 Assistant Professor of Economics, Faculty of Management and Economics, Shahid Bahonar University

2 MA in Economics, Faculty of Management and Economics, Shahid Bahonar University

3 Department of Economics, Management and Economics Faculty, Shahid Bahonar University of Kerman


International labor migration is one of the most important and effective socio-economic phenomena that exists in different countries. This phenomenon can have economic impacts on the destination and sending countries. Assessment of these effects can be useful for economic decision making. So, in this paper using a regional computable general equilibrium model (base year 2011), we have addressed the impacts of international labor migration with special attention to the issue of worker’s remittance. To this purpose, we analyzed two different scenarios: 1) ten percent outflow of skilled labor from Iran and 2) ten percent inflow of skilled work force to Iran. The results of the first scenario show that labor outflow negatively impacts on production and exports and positively impacts on prices and imports at the macro and sectoral levels. The negative effects on economic variables will be reduced if the work force outflow combined with remittances. Quantitative results also indicate that remittances improve the income and welfare of households. According to second scenario, inflow of labor increases the sectoral exports and production and decreases imports and prices (macro and sectoral).


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