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Mauritius

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  • James Y. Yao
  • Calvin A. McDonald
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    Abstract

    Despite strong economic growth, a "U"-curve unemployment phenomenon in Mauritius can be observed. Unemployment plunged from 21 percent to less than 4 percent between the early 1980s and the early 1990s, but this trend was reversed and the rate increased to 10 percent by end-2002. This paper provides an analytical framework to explain this development. The growth of higher-skilled sectors coupled with rigidities in the labor market seem to account for the observed unemployment behavior. Policy makers can improve employment prospects by not only investing in education to reduce skills mismatch but also by reforming the pay-setting institutions.

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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=16926
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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 03/211.

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    Length: 18
    Date of creation: 01 Nov 2003
    Date of revision:
    Handle: RePEc:imf:imfwpa:03/211

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    Related research

    Keywords: Unemployment; skilled labor; employment; labor demand; labor market; unemployment rate; labor force; skilled workers; labor supply; job creation; labor market institutions; bargaining system; unemployed; jobs; foreign labor force; domestic employment; job destruction; foreign employment; job opportunities; rising total average wages; average wage; labor market flexibility; job search; job loss; employment growth; labor market institution; unemployment problem; collective bargaining; labor productivity; job vacancies; national unemployment rate; employment prospects; labor shortages; employment experience; job seekers; labor markets; total labor force; flexible labor market; unemployment benefit; national job losses; employment opportunities; job insecurity; unemployment figures; labor market rigidities; rising unemployment rate; employment levels; skilled labor force; labor reallocation; structural unemployment;

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
    2. International Monetary Fund, 2002. "Mauritius," IMF Staff Country Reports 02/144, International Monetary Fund.
    3. Dowrick, Steve & Gemmell, Norman, 1991. "Industrialisation, Catching Up and Economic Growth: A Comparative Study across the World's Capitalist Economies," Economic Journal, Royal Economic Society, vol. 101(405), pages 263-75, March.
    4. Francesco Caselli, 1999. "Technological Revolutions," American Economic Review, American Economic Association, vol. 89(1), pages 78-102, March.
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    Citations

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    Cited by:
    1. AfDB AfDB, . "Africa Competitiveness Report 2009," Africa Competitiveness Report, African Development Bank, number 11 edited by Adeleke Oluwole Salami, 6.
    2. Ucal, Meltem & Bilgin, Mehmet Huseyin, 2009. "Income Inequality and FDI in Turkey: FM-OLS (Phillips-Hansen) Estimation and ARDL Approach to Cointegration," MPRA Paper 48765, University Library of Munich, Germany.
    3. World Bank, 2010. "Mauritius - Enhancing and Sustaining Competitiveness : Policy Notes on Trade and Labor," World Bank Other Operational Studies 2987, The World Bank.

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