An Investigation of Higher Education Effects on Economic Growth in Iran

Human resource allocation is one of the most important factor which can affect on value added creation in various sector. In this paper based on a dynamic model, we will test the relationship between human capital and economic growth in Iran. Our findings show that such relation is weak because of mismatching between jobs and education field basicly. This matter leads us to a reality which means omission of this inefficiency source can enhands the labor productivity andincrease economic growth. Other results confirm that high education laborforce has positive effects than low level education (primary and high school) on different sectors value added. So, authorities should consider more on higher education labor force in their planning and polices.