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Why Has Unemployment in Algeria Been Higher Than in Mena and Transition Countries

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  • Kangni Kpodar

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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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 07/210.

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Length: 30
Date of creation: 01 Aug 2007
Date of revision:
Handle: RePEc:imf:imfwpa:07/210

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Keywords: Unemployment; Labor markets; Taxation; employment; labor market; labor productivity; unemployment rate; labor supply; labor productivity growth; labor demand; labor market institutions; jobs; job creation; labor market regulation; unemployed; labor force; employment protection; unemployment rates; unemployment benefits; job security; employment programs; nairu; labor market rigidities; public employment; public employment programs; labor force growth; rate of unemployment; total employment; youth unemployment; labor market performance; youth unemployment rates; labor market flexibility; high unemployment; unemployment insurance; labor market issues; unemployment insurance system; employment growth; employment creation; bargaining power; labor organization; decline in unemployment; labor force participation; cost per job; labor market participation; effect on employment; male employment; labor market outcomes; labor regulations; share of employment; natural unemployment rate; labor cost; female employment; labor market developments; total unemployment; flexible labor market; job prospects; reductions in employment; public sector employment; permanent jobs; overall employment; labor market regulations; labour market; duration of unemployment; job turnover; long-term employment; high unemployment rate; labour; employment potential; job security regulation; female unemployment; natural rate of unemployment; labor force survey; high unemployment rates; collective dismissals; employment level; employment contract; job security provisions; new jobs; labor costs; effects on employment; government employment; collective bargaining; temporary jobs; job security regulations; unemployed person; unemployed persons; labour market institutions;

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References

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  1. Carmen Pagés-Serra & James J. Heckman, 2000. "The Cost of Job Security Regulation: Evidence from Latin American Labor Markets," Research Department Publications 4227, Inter-American Development Bank, Research Department.
  2. Bond, Stephen Roy & Hoeffler, Anke & Temple, Jonathan, 2001. "GMM Estimation of Empirical Growth Models," CEPR Discussion Papers 3048, C.E.P.R. Discussion Papers.
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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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