Labor market reforms, growth, and unemployment in labor-exporting countries in the Middle East and North Africa

Pierre-Richard Agénor (), Mustapha K. Nabli, Tarik Yousef and Henning Tarp Jensen

No 3328, Policy Research Working Paper Series from The World Bank

Abstract: This paper studies the impact of labor market policies on growth and unemployment in labor-exporting countries in the Middle East and North Africa. The analysis is based on a framework that captures many of the main features of the labor market in these countries. We conduct a variety of policy experiments, including a reduction in payroll taxation, cuts in public sector wages and employment, an increase in employment subsidies, a reduction in trade unions'bargaining power, and a composite reform program. Our key message is that to foster broad-based growth and job creation in the region, labor market reforms must not be viewed in isolation but rather as a component of a comprehensive program of structural reforms.

Keywords: Environmental Economics&Policies; Banks&Banking Reform; Labor Policies; Economic Theory&Research; Labor Markets; Municipal Financial Management; Environmental Economics&Policies; Labor Markets; Banks&Banking Reform; Economic Theory&Research (search for similar items in EconPapers)
Date: 2004-01-01
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Journal Article: Labor market reforms, growth, and unemployment in labor-exporting countries in the Middle East and North Africa (2007)
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