How Does Employment Protection Legislation Affect Unemployment in Tunisia? A Search Equilibrium Approach

May 1, 2005

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 applies a search matching model with firing restrictions to examine whether the existence of firing restrictions affects the outcome of the matching process and the natural rate of unemployment in Tunisia. The paper concludes that the removal of firing restrictions is likely to produce a favorable but limited impact on unemployment in Tunisia.

Subject: Employment protection, Job creation, Labor markets, Productivity, Unemployment

Keywords: equilibrium unemployment, WP

Pages:
17
Volume:
2005
DOI:
https://doi.org/10.5089/9781451861112.001
Issue:
092
Series:
Working Paper No. 2005/092
Stock No:
WPIEA2005092
ISBN:
9781451861112
ISSN:
1018-5941

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