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How Does Employment Protection Legislation Affect Unemployment in Tunisia? a Search Equilibrium Approach

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Author Info

  • Domenico Fanizza
  • Taline Koranchelian
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    Abstract

    This paper applies a search matching model with firing restrictions to examine whether the existence of firing restrictions affects the outcome of the matching process and the natural rate of unemployment in Tunisia. The paper concludes that the removal of firing restrictions is likely to produce a favorable but limited impact on unemployment in Tunisia.

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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=18203
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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/92.

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    Length: 17
    Date of creation: 01 May 2005
    Date of revision:
    Handle: RePEc:imf:imfwpa:05/92

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    Related research

    Keywords: Unemployment; Labor markets; job creation; employment; labor market; jobs; job destruction; unemployed; employment protection; job search; equilibrium unemployment; unemployed workers; job security; unemployment rate; labor force; employment protection legislation; labor market flexibility; labor demand; rate of unemployment; labor market regulations; unemployment problem; natural rate of unemployment; job security provisions; job seekers; aggregate employment; labor market policy; labor market dynamics; high unemployment; job turnover; average unemployment; unemployment policy; job vacancies; self-employment; unemployed worker; unemployment rates; composition of employment; job market; new jobs; labor contracts; youth unemployment; labor market outcomes; employment volatility; high unemployment rates; job flow; employment outlook; labor market needs; labor market activity; temporary unemployment; unemployment levels; employment performance; labor market reforms; labor regulation; labor turnover; employment cycles; employment composition; job matches; labor market policies; overall employment; temporary jobs; job security provision; total employment; labor reallocation; employment protections; flexible labor markets; labor market adjustment; unemployment ratio;

    This paper has been announced in the following NEP Reports:

    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. P Garibaldi, 1995. "Job Flow Dynamics and Firing Restrictions," CEP Discussion Papers dp0256, Centre for Economic Performance, LSE.
    2. Kugler, Adriana & Pica, Giovanni, 2003. "Effects of Employment Protection and Product Market Regulations on the Italian Labor Market," IZA Discussion Papers 948, Institute for the Study of Labor (IZA).
    3. Bentolila, Samuel & Saint-Paul, Gilles, 1992. "The macroeconomic impact of flexible labor contracts, with an application to Spain," European Economic Review, Elsevier, vol. 36(5), pages 1013-1047, June.
    4. Nickell, Stephen J, 1982. "The Determinants of Equilibrium Unemployment in Britain," Economic Journal, Royal Economic Society, vol. 92(367), pages 555-75, September.
    5. Bertola, Giuseppe, 1990. "Job security, employment and wages," European Economic Review, Elsevier, vol. 34(4), pages 851-879, June.
    6. Burda, Michael C, 1992. " A Note on Firing Costs and Severance Benefits in Equilibrium Unemployment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(3), pages 479-89.
    7. Pissarides, Christopher A, 1999. "Policy Influences on Unemployment: The European Experience," Scottish Journal of Political Economy, Scottish Economic Society, vol. 46(4), pages 389-418, September.
    8. Fanizza, Domenico, 1996. "Employment cycles in search equilibrium," Journal of Economic Dynamics and Control, Elsevier, vol. 20(5), pages 879-904, May.
    9. Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 397-415, July.
    10. Bentolila, Samuel & Bertola, Giuseppe, 1990. "Firing Costs and Labour Demand: How Bad Is Eurosclerosis?," Review of Economic Studies, Wiley Blackwell, vol. 57(3), pages 381-402, July.
    11. Diamond, Peter A., 1971. "A model of price adjustment," Journal of Economic Theory, Elsevier, vol. 3(2), pages 156-168, June.
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