{
  "title": "Why Has Unemployment in Algeria Been Higher than in MENA and Transition Countries?",
  "publication": "IMF Working Papers, August 1, 2007",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/why-has-unemployment-in-algeria-been-higher-than-in-mena-and-transition-countries-21275",
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  "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",
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    {
      "heading": "Overview",
      "content": "- Author: Kangni R Kpodar\n- Date: August 1, 2007\n- Scope: Analysis of determinants of labor market performance in Algeria using panel data on a sample of MENA and transition countries for 1995- 2005.\n- Series: Working Paper No. 2007/210\n- Pages: 30"
    },
    {
      "heading": "Main findings",
      "content": "- Lower growth in labor productivity in Algeria is associated with higher unemployment than the sample average.\n- Recent positive terms of trade shocks have helped Algeria reduce the unemployment differential relative to the sample average.\n- Labor market rigidities do not seem to explain why unemployment is higher in Algeria than in other countries.\n- Labor taxation does not seem to explain why unemployment is higher in Algeria than in other countries.\n- The results are robust to various panel econometric methods and instrumental variable estimates."
    },
    {
      "heading": "Methodology and robustness",
      "content": "- Empirical approach: Panel data estimation on a sample of MENA and transition countries for 1995- 2005.\n- Robustness: Findings hold across various panel econometric methods and instrumental variable estimates."
    },
    {
      "heading": "Policy implications",
      "content": "- Policies aimed at raising labor productivity growth could help reduce Algeria’s unemployment differential with MENA and transition country peers.\n- Terms of trade developments materially affect the unemployment differential; policies that mitigate adverse terms of trade shocks or capitalize on positive shocks can influence labor market outcomes.\n- Given that measured labor market rigidities and labor taxation do not account for Algeria’s higher unemployment, policy focus should prioritize productivity-enhancing reforms and macroeconomic management rather than solely labor market deregulation or tax changes.\n\n---\n\n Content in this bundle\n\n- Wp07210\n  - Wp07210 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp07210 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/why-has-unemployment-in-algeria-been-higher-than-in-mena-and-transition-countries-21275"
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    "Authors: Kangni R Kpodar",
    "Published: August 1, 2007",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451867749.001",
    "Author: Kangni R Kpodar",
    "Date: August 1, 2007",
    "Scope: Analysis of determinants of labor market performance in Algeria using panel data on a sample of MENA and transition countries for 1995- 2005.",
    "Series: Working Paper No. 2007/210",
    "Pages: 30",
    "Lower growth in labor productivity in Algeria is associated with higher unemployment than the sample average.",
    "Recent positive terms of trade shocks have helped Algeria reduce the unemployment differential relative to the sample average.",
    "Labor market rigidities do not seem to explain why unemployment is higher in Algeria than in other countries.",
    "Labor taxation does 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.",
    "Empirical approach: Panel data estimation on a sample of MENA and transition countries for 1995- 2005.",
    "Robustness: Findings hold across various panel econometric methods and instrumental variable estimates.",
    "Policies aimed at raising labor productivity growth could help reduce Algeria’s unemployment differential with MENA and transition country peers.",
    "Terms of trade developments materially affect the unemployment differential; policies that mitigate adverse terms of trade shocks or capitalize on positive shocks can influence labor market outcomes.",
    "Given that measured labor market rigidities and labor taxation do not account for Algeria’s higher unemployment, policy focus should prioritize productivity-enhancing reforms and macroeconomic management rather than solely labor market deregulation or tax changes.",
    "**Wp07210**"
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