Why has Unemployment in Algeria been higher than in MENA and Transition Countries

 
Author/Editor: Kpodar, Kangni
 
Publication Date: August 01, 2007
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: 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.
 
Series: Working Paper No. 07/210
Subject(s): Unemployment | Algeria | Labor markets | Taxation

Author's Keyword(s): Unemployment | Labor market institutions | Macroeconomic shocks
 
English
Publication Date: August 01, 2007
Format: Paper
Stock No: WPIEA2007210 Pages: 30
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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