Estimation of Inter-sectoral Labor Mobility Costs in Iran’s Economy

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Choubdaran Varnosfaderani, Ali | 2019

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 52012 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Rahmati, Mohammad Hossein
Abstract:
In order to estimate the inter-sectoral labor mobility costs in Iran’s economy, in this research, we design and estimate a structural model of worker’s decisions. The estimation method used in this research is Simulated Method of Moments and we have used Labor Force Survey and Household Expenditure and Income Survey in order to extract necessary moments. Our findings show that: 1) inter-sectoral labor mobility costs in Iran’s economy are large and they are between 3 to 11 times the annual income. 2) These costs are higher for female, rural, older and high-educated workers. 3) If these costs were zero, production in tradable and non-tradable sectors would have been 36 and 16 percent larger compare to their values in the year 1395 respectively
Keywords:
Intersectoral Transaction Cost ; Labor Flow ; Choice Set ; Employment Decision

No TOC