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Why Has Unemployment in Algeria Been Higher than in MENA and Transition Countries?

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  • Kangni Kpodar

    (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)

Abstract

This paper analyzes the determinants of labor market performance in Algeria. When the model is estimated with panel data on a sample of MENA and transition countries for 1995–2005, the results suggest that lower growth in labor productivity in Algeria is associated with higher unemployment than the sample average, though recent positive terms of trade shocks have helped Algeria reduce the differential. Labor market rigidities and labor taxation do not seem to explain why unemployment is higher in Algeria than in other countries. The results are robust to various panel econometric methods and instrumental variable estimates.

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Paper provided by HAL in its series Working Papers with number halshs-00556938.

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Date of creation: 18 Jan 2011
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Handle: RePEc:hal:wpaper:halshs-00556938

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Keywords: Unemployment; Labor market institutions; Macroeconomic shocks;

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Cited by:
  1. AfDB AfDB, 2011. "MDG Report 2011 - Full Report," MDG Report 334, African Development Bank.
  2. Almosabbeh, Imadeddin, 2008. "العوامل المؤثرة في البطالة في الجمهورية العربية السورية دراسة تطبيقية باستخدام منهجية التكامل المشترك
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    ," MPRA Paper 41871, University Library of Munich, Germany.

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