The Spillover Effects of Higher Education Institutions Development on Employment and Income in Iran

Articles in Press

Document Type : Original Article

Authors

yazdan gudarzi farahani ¹

Farzan Khamesian ²

Behnam Bagheri ³

Hamidreza hassanzadeh ⁴

¹ دانشگاه تهران

² استادیار، گروه پژوهشی عمومی بیمه، پژوهشکده بیمه، تهران، ایران

³ دکتری مدیریت کسب و کار (DBA)ُ دانشگاه تهران-تهران-ایران

⁴ PhD Student, Birjand Branch, Islamic Azad University, Birjand, Iran.

https://doi.org/10.22067/erd.2026.99747.1380

Abstract

The aim of this paper was to investigate the spillover effects of higher education institutions development on regional economies in Iran. In this study, using a spatial econometric approach, the impact of higher education institutions on regional economic conditions was examined. For this purpose, provincial data from the country were used to estimate the effects of higher education institutions on employment and income in the host province and neighboring provinces during the period 2001–2025. Overall, a thorough examination of the extent and magnitude of the potential benefits of higher education, both at the individual level and at the aggregate economy level, is essential to justify the high costs associated with such investments. This issue is particularly important for governments that rely on limited resources to establish or subsidize higher education institutions. The results obtained from this study showed that spillover effects of higher education institutions exist across provinces. This means that changes in the status of higher education institutions not only affect the host province but also have spillover effects on neighboring provinces. In addition, the results indicated that the development of higher education has led to a reduction in unemployment and a significant increase in income levels.

Keywords

Higher Education Institutions

Spillover Effects

Spatial Econometrics

Employment

Income

Subjects

• Iran's economy

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