Estimates of Labor Mobility Costs in a Structural Model of Iran Economy

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RAHMATI MOHAMMAD HOSSEIN; Chobdaran Ali

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

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Journal: Journal of Economic Research Year:2020 | Volume:55 | Issue:1 Page(s): 27-56

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Title

Estimates of Labor Mobility Costs in a Structural Model of Iran Economy

Author(s)

RAHMATI MOHAMMAD HOSSEIN | Chobdaran Ali | Issue Writer Certificate

Keywords

laborQ2

mobility costsQ1

economic sectorsQ1

structural model estimationQ1

Abstract

In this study, we construct a structural model of labor market in Iran in order to estimate the labor mobility cost using micro data. The model benefits from heterogeneity in age, gender, household location, and education and estimate varying labor mobility costs conditional on these factors and the origin and destination of the mobility. We find that 1) inter-sectoral labor mobility in Iran is substantial and range between 3 to 11 times of average per capita income 2) the labor mobility costs is higher for women, educated laborer, old, and rural population 3) if the cost vanishes to zero, the production in tradable and non-tradable sector increase by 36 and 16 percent, respectively. These estimates provide significant evidence that implementing major policy changes can bring substantial welfare loss especially for laborers with lower education and in rural areas.

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APA: Copy

RAHMATI, MOHAMMAD HOSSEIN, & Chobdaran, Ali. (2020). Estimates of Labor Mobility Costs in a Structural Model of Iran Economy. TAHGHIGHAT-E-EGHTESADI, 55(1 ), 27-56. SID. https://sid.ir/paper/390344/en

Vancouver: Copy

RAHMATI MOHAMMAD HOSSEIN, Chobdaran Ali. Estimates of Labor Mobility Costs in a Structural Model of Iran Economy. TAHGHIGHAT-E-EGHTESADI[Internet]. 2020;55(1 ):27-56. Available from: https://sid.ir/paper/390344/en

IEEE: Copy

MOHAMMAD HOSSEIN RAHMATI, and Ali Chobdaran, “Estimates of Labor Mobility Costs in a Structural Model of Iran Economy,” TAHGHIGHAT-E-EGHTESADI, vol. 55, no. 1 , pp. 27–56, 2020, [Online]. Available: https://sid.ir/paper/390344/en

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