Unemployment and Labor Market Issues in Algeria
IMF Working Papers, April 1, 2012
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Bibliographic details
- Authors: Davide Furceri
- Published: April 1, 2012
- Series: IMF Working Papers
Summary
- The aim of this paper is to analyze unemployment and labor market developments in Algeria and assess the factors that may hamper employment creation.
- The results of the paper suggest that the relative low output-employment elasticities and rigid labor market are the main factors behind the still high level of unemployment, particularly among the youth.
- Simulation analyses, based on the results on the relation between labor market institutions and unemployment, show that improvement in labor market conditions in Algeria would be key in reducing unemployment both in the short- and medium-term.
Key Findings
- Primary drivers of persistent unemployment:
- Relative low output-employment elasticities.
- Rigid labor market (labor market rigidity and imperfections).
- Demographic impact:
- High level of unemployment is particularly pronounced among the youth.
- Labor market metrics and concepts emphasized:
- Employment intensity, employment-output elasticity, GDP-employment elasticity, unemployment-GDP elasticity, labor-market mismatch, underpinning employment elasticity.
Simulation Analysis and Policy Implications
- Simulation results indicate that:
- Improvement in labor market conditions in Algeria would be key in reducing unemployment both in the short- and medium-term.
- Policy emphasis:
- Addressing labor market rigidity and imperfections to raise output-employment elasticities.
- Reforms targeted at enhancing labor market flexibility to better absorb youth into employment.
Content in this bundle
- 1. Unemployment Statistics, 2010