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Structure of labour market and unemployment in Sudan

Author

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  • Nour, S.

    (University of Khartoum, UNU-MERIT)

Abstract

This paper examines the structure of the labour market and unemployment in Sudan. One advantage of our analysis is that we explain several stylized facts on the labour market using new secondary data on population, employment and unemployment based on Sudan Central Bureau of Statistics 2010 the Fifth Sudan Population and Housing Census 2008. We explain several stylized facts on the relation between the structure of the labour market and demographic structure, labour force, participation rates, economic activities, low skill level and high unemployment rate defined by gender and mode of living in Sudan. Different from the findings in the empirical literature in support of the Phillips curve on the negative correlation between inflation and unemployment rates, we find a positive and significant correlation between unemployment and inflation rates in Sudan during the period 2000-2008. Moreover, different from the analysis in Sudanese literature, we present a more comprehensive analysis of four stylized facts on the unemployment problem in Sudan, including identifying several types of unemployment; interpretation of unemployment problems from due to endogenous and exogenous causes; analysis of the high incidence of unemployment among youth population and a high mismatch between educational qualifications supply and labour market requirements demand. The major policy implication from our findings is that the unemployment problem is related to endogenous and exogenous causes; therefore policy interventions for reducing unemployment should deal with these endogenous and exogenous causes. Notably, improvement of job creation and quality of educational policies and consistency between educational qualifications output and labour market requirements. Another major policy implication from our results on the significant positive correlation between increase in unemployment and inflation rates 2000-2008, implies that macroeconomic policies aimed at or targeting reducing inflation rates would also help to reduce unemployment rates in Sudan.

Suggested Citation

  • Nour, S., 2014. "Structure of labour market and unemployment in Sudan," MERIT Working Papers 2014-016, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2014016
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    References listed on IDEAS

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    1. Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-380, November.
    2. United Nations Development Programme (UNDP),, 2004. "Arab Human Development Report 2003: Building a Knowledge Society," OUP Catalogue, Oxford University Press, number 9789211261578.
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    Cited by:

    1. Nour, Samia, 2020. "Overview of the Sudan Uprising," MERIT Working Papers 2020-017, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    More about this item

    Keywords

    Human capital; Labour market; employment; unemployment; Sudan;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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