The Effects of Afghan Immigrants on the Iranian Labour Market

In 2005 afghanistan has been the origin country of the largest refugees, by about a quarter of the global refugee population, who were mainly living in pakistan and iran. almost all afghan labourers are working illegally in iran and have not work permission. they are unskilled and cheap workers, accepting any low payed job they are offered.afghan refugees increased the supply of labour force in iran for more than 2 decades. so wage increase for low skill workers has been very slow, specially in construction work, where afghan workers have a large share. the results of our research show that afghan workers have been attracted to the prosperous provinces where the unskilled workers where most wanted. as the workers can move easily in the country, the presence of afghan workers in tehran, isfahan and khorasan, has not caused higher unemployment rate neither in cities nor in villages of these provinces, however unemployment rate in the country has been raised. if afghan immigrants leave iran, unemployment rate will be lower and the wage rate for unskilled workers will rise considerably.