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Why Has Unemployment in Algeria Been Higher than in MENA and Transition Countries?

Kangni Kpodar ()

No 07/210, IMF Working Papers from International Monetary Fund

Abstract: This paper analyzes the determinants of labor market performance in Algeria. When the model is estimated with panel data on a sample of MENA and transition countries for 1995- 2005, the results suggest that lower growth in labor productivity in Algeria is associated with higher unemployment than the sample average, though recent positive terms of trade shocks have helped Algeria reduce the differential. Labor market rigidities and labor taxation do not seem to explain why unemployment is higher in Algeria than in other countries. The results are robust to various panel econometric methods and instrumental variable estimates.

Keywords: Algeria; Labor markets; Labor market institutions; Unemployment; Taxation; employment, labor market, labor productivity, unemployment rate, Macroeconomic shocks, (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr, nep-dev and nep-lab
Date: 2007-08-01
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Related works:
Working Paper: Why Has Unemployment in Algeria Been Higher than in MENA and Transition Countries? (2011) Downloads
Working Paper: Why Has Unemployment in Algeria Been Higher than in MENA and Transition Countries? (2008) Downloads
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