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Improving skills and employment opportunities in Tunisia

Robert Grundke and Steven Cassimon

No 1727, OECD Economics Department Working Papers from OECD Publishing

Abstract: Unemployment rates have been persistently high, particularly for young labour market entrants. Rising access to education has increased the supply of high-skilled labour, but the private sector has mainly created jobs in low-skill intensive and low-productivity activities, leading to high unemployment rates among tertiary graduates and particularly for women. Moreover, education and professional training systems operate in isolation from labour market needs and do not equip workers with the skills demanded by firms. Labour market policies and regulations discourage formal job creation and complicate the matching process in the labour market. To foster business dynamism and innovation and create more and better jobs, it is crucial to lower regulatory barriers to market entry and entrepreneurship, raise the international integration of domestic firms and adjust labour taxes. The quality of education and professional training needs to improve, and more cooperation with the private sector is necessary to better prepare youth and young adults for the labour market. Better targeting of active labour market policies and reducing barriers to labour mobility are key to improve labour market matching.

Keywords: business environment; education; labour demand; Labour market; skill mismatch; training; Tunisia (search for similar items in EconPapers)
JEL-codes: I25 I28 J08 J23 J24 J48 (search for similar items in EconPapers)
Date: 2022-10-10
New Economics Papers: this item is included in nep-ara and nep-lma
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