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More Jobs for University Graduates: Some Policy Options for Tunisia

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  • Mohamed Ali Marouani

    ()
    (Université Paris1-Sorbonne/IEDES, DIAL et ERF)

Abstract

(english) The combination of demographic factors and an increase in education has caused a significant rise of university graduates’ unemployment in the MENA region. The article provides a prospective costeffectiveness analysis of the impact of alternative labor 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 significantly unemployment. Other policy options need to be considered. _________________________________ (français) La combinaison de facteurs démographiques et de progrès dans l’éducation a entraîné une hausse significative du chômage des diplômés dans la région MENA. L’article fournit une analyse de type coût-efficacité de politiques alternatives d’mploi à l’aide d’un modèle d’équilibre général dynamique. Le modèle permet une détermination endogène du niveau de chômage à l’aide d’un modèle multisectoriel de salaires d’efficience. Le principal résultat est qu’une subvention salariale ciblée sur les secteurs intensifs en main-d’oeuvre qualifiée est plus efficace que des réductions d’impôts ou des subventions à l’investissement. Cependant ces subventions salariales ne sont pas suffisantes pour réduire significativement le niveau du chômage. D’autres options doivent être considérées.

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File URL: http://www.dial.ird.fr/media/ird-sites-d-unites-de-recherche/dial/documents/publications/doc_travail/2009/2009-01
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Bibliographic Info

Paper provided by DIAL (Développement, Institutions et Mondialisation) in its series Working Papers with number DT/2009/01.

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Length: 10 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:dia:wpaper:dt200901

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Keywords: Employment policies; skilled workers; unemployment; dynamic general equilibrium models; Middle East and North Africa; Tunisia; politiques de l’emploi; main-d’oeuvre qualifiée; chômage; modèle d’équilibre general dynamiques; Afrique du Nord et Moyen Orient; Tunisie.;

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Cited by:
  1. 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.
  2. 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, vol. 2(1), pages 1-19, December.

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