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Labor market reforms, growth, and unemployment in labor-exporting countries in the Middle East and North Africa

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  • Agenor, Pierre-Richard
  • Nabli, Mustapha K.
  • Yousef, Tarik
  • Jensen, Henning Tarp

Abstract

This paper studies the impact of labor market policies on growth and unemployment in labor-exporting countries in the Middle East and North Africa. The analysis is based on a framework that captures many of the main features of the labor market in these countries. We conduct a variety of policy experiments, including a reduction in payroll taxation, cuts in public sector wages and employment, an increase in employment subsidies, a reduction in trade unions'bargaining power, and a composite reform program. Our key message is that to foster broad-based growth and job creation in the region, labor market reforms must not be viewed in isolation but rather as a component of a comprehensive program of structural reforms.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Policy Modeling.

Volume (Year): 29 (2007)
Issue (Month): 2 ()
Pages: 277-309

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Handle: RePEc:eee:jpolmo:v:29:y:2007:i:2:p:277-309

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Web page: http://www.elsevier.com/locate/inca/505735

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References

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  1. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, number 9780521464673, April.
  2. Agenor, Pierre-Richard & Aynaoui, Karim El, 2003. "Labor market policies and unemployment in Morocco : a quantitative analysis," Policy Research Working Paper Series 3091, The World Bank.
  3. Coe, David T & Snower, Dennis J., 1997. "Policy Complementarities: The Case for Fundamental Labour Market Reform," CEPR Discussion Papers 1585, C.E.P.R. Discussion Papers.
  4. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
  5. Rama, Martin, 1998. "How Bad Is Unemployment in Tunisia? Assessing Labor Market Efficiency in a Developing Country," World Bank Research Observer, World Bank Group, vol. 13(1), pages 59-77, February.
  6. Norback, Pehr-Johan, 2001. "Cumulative effects of labor market distortions in a developing country," Journal of Development Economics, Elsevier, vol. 65(1), pages 135-152, June.
  7. Strand, Jon, 2003. "The decline or expansion of unions: a bargaining model with heterogeneous labor," European Journal of Political Economy, Elsevier, vol. 19(2), pages 317-340, June.
  8. Beetsma, R.M.W.J. & Bettendorf , L.J.H. & Broer, D.P., 2003. "The budgeting and economic consequences of ageing in the Netherlands," Open Access publications from Tilburg University urn:nbn:nl:ui:12-383717, Tilburg University.
  9. Assaad, Ragui, 1997. "The Effects of Public Sector Hiring and Compensation Policies on the Egyptian Labor Market," World Bank Economic Review, World Bank Group, vol. 11(1), pages 85-118, January.
  10. Agenor, Pierre-Richard, 2005. "Fiscal adjustment and labor market dynamics in an open economy," Journal of Development Economics, Elsevier, vol. 76(1), pages 97-125, February.
  11. Orszag, Mike & Snower, Dennis J., 1999. "Anatomy of Policy Complementarities," IZA Discussion Papers 41, Institute for the Study of Labor (IZA).
  12. Pierre-Richard Agénor, 1996. "The Labor Market and Economic Adjustment," IMF Staff Papers, Palgrave Macmillan, vol. 43(2), pages 261-335, June.
  13. Gerhard Glomm & B. Ravikumar, 1998. "Flat-Rate Taxes, Government Spending on Education, and Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 306-325, January.
  14. World Bank, 2004. "Unlocking the Employment Potential in the Middle East and North Africa : Toward a New Social Contract," World Bank Publications, The World Bank, number 15011, October.
  15. Orszag, Mike & Snower, Dennis J., 1998. "Anatomy of policy complementarities," Open Access Publications from Kiel Institute for the World Economy 2252, Kiel Institute for the World Economy (IfW).
  16. repec:fth:iniesr:500 is not listed on IDEAS
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Citations

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Cited by:
  1. Batyra, Anna & Sneessens, Henri R., 2010. "Selective Reductions in Labor Taxation: Labor Market Adjustments and Macroeconomic Performance," IZA Discussion Papers 5013, Institute for the Study of Labor (IZA).
  2. repec:hal:wpaper:halshs-00203654 is not listed on IDEAS
  3. Agenor, Pierre-Richard & Nabli, Mustapha K. & Yousef, Tarik M., 2005. "Public infrastructure and private investment in the Middle East and North Africa," Policy Research Working Paper Series 3661, The World Bank.
  4. Stefan Boeters & Luc Savard, 2012. "The Labour Market in CGE Models," CPB Discussion Paper 201, CPB Netherlands Bureau for Economic Policy Analysis.
  5. Stampini Marco & Verdier-Chouchane Audrey, 2011. "Labor Market Dynamics in Tunisia: The Issue of Youth Unemployment," Review of Middle East Economics and Finance, De Gruyter, vol. 7(2), pages 1-35, September.
  6. Dierk Herzer & Michael Grimm, 2012. "Does foreign aid increase private investment? Evidence from panel cointegration," Applied Economics, Taylor & Francis Journals, vol. 44(20), pages 2537-2550, July.
  7. P R Agénor, 2004. "The Macroeconomics of Poverty Reduction," Centre for Growth and Business Cycle Research Discussion Paper Series 43, Economics, The Univeristy of Manchester.
  8. Berrittella, Maria, 2012. "Modelling the labour market of minority ethnic groups," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 389-402.
  9. Hesham AlShehabi, Omar, 2012. "Energy and labour reform: Evidence from Iran," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 441-459.
  10. Alessio Tei & Claudio Ferrari, 2010. "Evoluzione dell'industria terminalistica per i servizi di linea nel mediteraneo. Implicazioni per la portualità nazionale," Working Papers 1008, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2010.
  11. Boeters, Stefan & Savard, Luc, 2013. "The Labor Market in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, Elsevier.

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