Migration out of a country often severely affects that nation’s economy. Iran is one example of this. Explain how migration out of Iran has contributed to the country’s brain drain, and describe the effect this has had on the economy.

Answer:

Human capital flight is the phenomenon of talented and educated workers leaving their home countries to work in other countries. Since the Islamic Revolution in 1979, over two million people have left Iran for the United States, Canada, Australia, and European countries. It is estimated that over 150,000 of Iran’s most educated citizens leave each year to study or work abroad because of Iran's struggling economy and lack of available jobs. While industry and services make up the largest employment sectors, over 25% of large Iran’s population continues to be employed in the agricultural sector. Job opportunities for the best and brightest don’t exist as they do in other markets, and the unemployment rate is over 12.5%. As a result, Iran is losing almost 3 people per 1,000 people in the population. This contributes to a sluggish economy and a GNI per capita of only $10,800. Responses may vary but should include some or all of the following information: