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Jordan Jobs Diagnostic

Author

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  • Winkler, Hernan Jorge
  • Gonzalez,Alvaro S.

Abstract

This report provides a detailed diagnostic of the Jordanian labor market. It finds that labor market outcomes are worsening in Jordan. It has one of the lowest levels of labor force participation in the world, and only one out of every three working-age Jordanians has a job. Low rates of firm entry and exit suggest that the process of creative destruction is limited. Most private sector firms are either small – and stay small or large and old. The share of employment in small firms -which tend to be less productive- is growing. Employment is increasingly informal, less productive. High levels of informality drive down overall levels of labor productivity and suggests that important distortions affect the allocation of resources in the economy. At the same time, a large inflow of Syrian refugees and economic migrants makes the need for job creation even more urgent.

Suggested Citation

  • Winkler, Hernan Jorge & Gonzalez,Alvaro S., 2019. "Jordan Jobs Diagnostic," Jobs Group Papers, Notes, and Guides 31564361, The World Bank.
    • Handle: RePEc:wbk:jbsgrp:31564361
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    File URL: http://documents.worldbank.org/curated/en/681161574097516931/Jobs-Diagnostic-Jordan
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    References listed on IDEAS

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    1. Steven J. Davis & Magnus Henrekson, 2004. "Tax Effects on Work Activity, Industry Mix and Shadow Economy Size: Evidence from Rich-Country Comparisons," NBER Working Papers 10509, National Bureau of Economic Research, Inc.
    2. World Bank Group, 2018. "Women, Business and the Law 2018," World Bank Publications - Books, The World Bank Group, number 29498, December.
    3. Assaad, Ragui (ed.), 2014. "The Jordanian Labor Market in the New Millennium," OUP Catalogue, Oxford University Press, number 9780198702054.
    4. Hamermesh, Daniel S, 1995. "Labour Demand and the," Economic Journal, Royal Economic Society, vol. 105(430), pages 620-634, May.
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    Cited by:

    1. Rother,Friederike Uta & Chartouni,Carole & Sanchez-Reaza,Javier & Brodersohn Ostrovich,Ernesto Ariel & Pallares-Miralles,Montserrat, 2022. "Voluntary Savings Schemes to Protect Informal Workers in Jordan," Social Protection Discussion Papers and Notes 170802, The World Bank.
    2. Lo Bello, Salvatore & Sanchez Puerta, Maria Laura & Winkler, Hernan, 2019. "From Ghana to America: The Skill Content of Jobs and Economic Development," IZA Discussion Papers 12259, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    united nations conference on trade and development; high rate of population growth; employment in the services sector; male labor force participation rate; public sector wage premium; gross fixed capital formation; female labor force participation; Labor Market; elasticity of labor supply; information and communication technology; real exchange rate appreciation; lower level of education; educational attainment of woman; high level of dependence; arts and humanities education; high level of dispersion; low labor force participation; process of trade liberalization; paper and paper products; employment rate of woman; elasticity of labor demand; gender and labor market; women's labor market outcomes; Levels of Educational Attainment; quality of education system; real effective exchange rate; quality education system; Primary and Secondary Education; total factor productivity growth; rate of growth; public sector job; private sector job; labor productivity growth; labor market segmentation; fear of failure; Job Creation; fields of specialization; demand for labor; private sector employment; agriculture industry; access to finance; unpaid family worker; private sector worker; female labor market; average real wage; high fertility rate; gender wage gap; foreign direct investment; share of wage; social insurance coverage; social security coverage; public sector employment; rate of employment; number of jobs; foreign trade partners; highly educated women; private sector counterpart; private sector wage; job creation rate; public sector worker; labor market transition; output per worker; structure of employment; supply of worker; change in employment; higher education level; employment of woman; million people; social security reform; labor market performance; Public Sector Jobs; employment and unemployment; allocation of resource; low labor productivity; payroll tax reduction; law and regulation; inflow of migrants; labor market opportunities; effect on employment; share of labor; tax rate reduction; formal labor market; implementation of law; number of refugees; social security system; women in industry; privileges and immunity; barriers to growth; formal educational system; real exchange appreciation; lack of availability; purchasing power parity; labor market distortion; employment in agriculture; cost of labor; skill train program; inflow of immigrants; share of export; formal sector wage; share of employment; high school education; demand for worker; protection against unemployment; price of oil; increase productivity; social insurance fund; incentive for employer; inflow of remittance; traditional gender roles; labor market participation; labor market integration; social security contribution; number of workers; payroll tax rate; less skilled worker; role of remittance; decline in productivity; impact of remittance; impact of refugees; economies of scale; private sector public; quality of work; forms of employment; lack of opportunity; physical capital accumulation; degree in education; complete secondary education; decomposition of growth; effects of competition; official unemployment rate; incidence of unemployment; higher test score; gulf cooperation council; machinery and equipment; private sector company; reallocation of resource; rates of entrepreneurship; mining and mineral; employer payroll tax; exposure to risk; informal sector worker; government wage bill; working age population; price adjustment mechanism; real wage index; labor market condition; Real estate; Gender Gap; Young Workers; retail trade; value added; work permit; young child; minimum wage; total employment; unskilled worker; oil price; comparator country; first marriage;
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