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Abstract
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this study investigated the effect of international labor migration on
Iran’s economy using a neo-classical growth model with the
assumption of labor heterogeneity within the framework of dynamic
stochastic general equilibrium model. After solving the model, the
obtained equations were linearized and different values were assigned
to the parameters according to Iran’s economy information. The results
indicated that emigration of skilled labor force reduced production,
investment, and per capita consumption, increased skilled individuals’
wages, and decreases wages for unskilled individuals; however,
immigration enhanced labor force and population and reduced
production, investment and per capita consumption. On the other hand,
the labor force’s wages also declined with an increase in unskilled labor
force. Furthermore, a variation in the degree of substitution between
unskilled labor and capital only changed the impact of the immigration
momentum and had no impact on the type of relationship. If emigration
consists of a combination of skilled and unskilled labor force, its
effectiveness only changes.
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