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Trade Openness and Youth Employment in Sub-Saharan Africa: Should We Regulate the Labor Market?

Author

Listed:
  • Kpognon, Koffi

    (Pan African University, Cameroon)

  • Ondoa, Henri Atangana

    (University of Yaoundé II, Cameroon)

  • Bah, Mamadou

    (Pan African University, Cameroon)

Abstract

This study analyzes the effect of trade openness and labor market regulation on youth employment in Sub-Saharan Africa (SSA). It covers a panel of 41 countries over the period 2002-2017, a period determined by the availability of the relevant data on labor market regulation. The results obtained using pooled ordinary least squares (OLS) regression and instrumental variable-two-stage least squares (IV-2SLS) estimators reveal that trade openness and labor market regulation rigidity have a positive and significant impact on youth employment in SSA. More interestingly, trade openness negatively and significantly affects youth employment in more rigid labor markets in SSA. This result remains robust in several robustness tests. Finally, this study also examined the case of young women’s employment in SSA.

Suggested Citation

  • Kpognon, Koffi & Ondoa, Henri Atangana & Bah, Mamadou, 2020. "Trade Openness and Youth Employment in Sub-Saharan Africa: Should We Regulate the Labor Market?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 35(4), pages 751-777.
    • Handle: RePEc:ris:integr:0816
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    Citations

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    Cited by:

    1. Liu, Zhen & Ngo, Thanh Quang & Saydaliev, Hayot Berk & He, Huiyuan & Ali, Sajid, 2022. "How do trade openness, public expenditure and institutional performance affect unemployment in OIC countries? Evidence from the DCCE approach," Economic Systems, Elsevier, vol. 46(4).
    2. Talla Fokam, Dieu Ne Dort & Kamga, Benjamin Fomba & Nchofoung, Tii N., 2023. "Information and communication technologies and employment in developing countries: Effects and transmission channels," Telecommunications Policy, Elsevier, vol. 47(8).
    3. Takpara, Moukaila Mouzamilou & Fouopi Djiogap, Constant & Sawadogo, Bouraima, 2022. "Trade Policy and African Participation in Global Value Chains: Does Trade Facilitation Matter?," Conference papers 333499, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Mina Baliamoune-Lutz, 2023. "Does trade openness affect youth unemployment? New evidence from developing and emerging economies," Economics Bulletin, AccessEcon, vol. 43(3), pages 1502-1513.
    5. Mina Baliamoune, 2022. "Trade and Youth Labor Market Outcomes: Empirical Evidence and Policy Implications," Research papers & Policy papers 1945, Policy Center for the New South.

    More about this item

    Keywords

    Trade Openness; Labor market regulation; Youth Employment; Pooled ordinary least squares (OLS) regression; instrumental variable-two-stage least squares (IV-2SLS); Sub-Saharan Africa (SSA);
    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
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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