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More jobs for university graduates: some policy options for Tunisia

Author

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  • Mohamed Ali Marouani

Abstract

The combination of demographic factors and an increase in education has caused a significant rise of university graduates' unemployment in the Middle-East and North Africa regions. This article provides a prospective cost-effectiveness analysis of the impact of alternative labour market policies using a dynamic general equilibrium model. The model allows for an endogenous determination of unemployment through a multisectoral efficiency wage setting mechanism. The main finding is that a wage subsidy targeted at highly skilled intensive sectors is more effective than tax reductions or investment subsidies. However, wage subsidies are not enough to reduce unemployment significantly. Other policy options need to be considered.

Suggested Citation

  • Mohamed Ali Marouani, 2010. "More jobs for university graduates: some policy options for Tunisia," Applied Economics Letters, Taylor & Francis Journals, vol. 17(10), pages 933-937.
    • Handle: RePEc:taf:apeclt:v:17:y:2010:i:10:p:933-937
    DOI: 10.1080/13504850802599466
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    Cited by:

    1. Marouani, Mohamed A. & Nilsson, Björn, 2016. "The labor market effects of skill-biased technological change in Malaysia," Economic Modelling, Elsevier, vol. 57(C), pages 55-75.
    2. repec:dau:papers:123456789/14733 is not listed on IDEAS
    3. Anda David & Mohamed Ali Marouani, 2015. "Migration and Employment Interactions in a Crisis Context: the case of Tunisia," Working Papers 20150007, UMR Développement et Sociétés, Université Paris 1 Panthéon-Sorbonne, Institut de Recherche pour le Développement.
    4. Björn Nilsson & Mohamed Ali Marouani, 2015. "The Labor Market Effects of Skillbiased Technilogical Change in Malasya," Working Papers 20150006, UMR Développement et Sociétés, Université Paris 1 Panthéon-Sorbonne, Institut de Recherche pour le Développement.
    5. Ali Souag & Ragui Assaad, 2018. "The impact of the action plan for promoting employment and combating unemployment on employment informality in Algeria," Middle East Development Journal, Taylor & Francis Journals, vol. 10(2), pages 272-298, July.
    6. repec:dau:papers:123456789/14850 is not listed on IDEAS
    7. Anda David & Mohamed Ali Marouani, 2013. "The Impact of Labor Mobility on Unemployment: A Comparison between Jordan and Tunisia," Working Papers 823, Economic Research Forum, revised Dec 2013.
    8. 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.
    9. repec:dau:papers:123456789/14987 is not listed on IDEAS
    10. Stijn Broecke, 2013. "Tackling graduate unemployment in North Africa through employment subsidies: A look at the SIVP programme in Tunisia," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-19, December.

    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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