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Jordan Jobs Diagnostic

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  • Hernan Winkler
  • Alvaro Gonzalez

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.
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Suggested Citation

  • Hernan Winkler & Alvaro Gonzalez, 2019. "Jordan Jobs Diagnostic," World Bank Publications - Reports 32751, The World Bank Group.
    • Handle: RePEc:wbk:wboper:32751
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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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