The effect of changing in age structure of Iranian population on the labor supply,1966-2026

Iran, like other developing countries, has been deeply concerned with the process of demographic transition since 1950s. During 1955-1975 the high fertility rate {6.5 children per women} led to relative increase of population under 15 years to above 40 %. Iran, experienced signs of reduction of fertility over 1980-2010. With appearance of fertility control in this decade, the share of population under 15 years has reduced gradually, and the share of the potentially active population aged 15-64 years which had vacillated around 52% between 1956-1986, had risen to 56.1% in 1996 and to over 71% by 2011. The aim of this paper is to measure and provide a basis for a better understanding of the effect of population age structure changing on the labor supply in Iran, during the 1966-2011 and its forecasting for 2026.This study has measured the changes in population age structure by applying the indirect method {standardizing age specific activity rates}.Data are taken from the Statistical Center of Iran and ILO estimation's for 1966-2011. Estimations in the five years ago which are comparable in terms of demographic experiences of diverse countries over the past half century. This comparative study showed that labor participation rates for male and female in the final projection year 2026 will show remarkable changes.