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Labor market reforms, growth, and unemployment in labor-exporting countries in the Middle East and North Africa

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Author Info
Agenor, Pierre-Richard
Nabli, Mustapha K.
Yousef, Tarik
Jensen, Henning Tarp

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Abstract

This paper studies the impact of labor market policies on growth and unemployment in labor-exporting countries in the Middle East and North Africa. The analysis is based on a framework that captures many of the main features of the labor market in these countries. We conduct a variety of policy experiments, including a reduction in payroll taxation, cuts in public sector wages and employment, an increase in employment subsidies, a reduction in trade unions'bargaining power, and a composite reform program. Our key message is that to foster broad-based growth and job creation in the region, labor market reforms must not be viewed in isolation but rather as a component of a comprehensive program of structural reforms.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3328.

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Date of creation: 01 Jan 2004
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Handle: RePEc:wbk:wbrwps:3328

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Related research
Keywords: Environmental Economics&Policies; Banks&Banking Reform; Labor Policies; Economic Theory&Research; Labor Markets; Municipal Financial Management; Environmental Economics&Policies; Labor Markets; Banks&Banking Reform; Economic Theory&Research;

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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.:
  1. Orszag, J. Michael & Snower, Dennis J., 1998. "Anatomy of Policy Complementarities," Working Paper Series 500, Research Institute of Industrial Economics.
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  2. David Coe & Dennis Snower, 1996. "Policy Complementarities: The Case for Fundamental Labor Market Reform," Archive Discussion Papers 9625, Birkbeck, Department of Economics, Mathematics & Statistics.
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  3. Gerhard Glomm & B. Ravikumar, 1998. "Flat-Rate Taxes, Government Spending on Education, and Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 306-325, January. [Downloadable!] (restricted)
  4. Agenor, Pierre-Richard & Aynaoui, Karim El, 2003. "Labor market policies and unemployment in Morocco : a quantitative analysis," Policy Research Working Paper Series 3091, The World Bank. [Downloadable!]
  5. Strand, Jon, 2003. "The decline or expansion of unions: a bargaining model with heterogeneous labor," European Journal of Political Economy, Elsevier, vol. 19(2), pages 317-340, June. [Downloadable!] (restricted)
  6. Rama, Martin, 1998. "How Bad Is Unemployment in Tunisia? Assessing Labor Market Efficiency in a Developing Country," World Bank Research Observer, Oxford University Press, vol. 13(1), pages 59-77, February. [Downloadable!]
  7. Norback, Pehr-Johan, 2001. "Cumulative effects of labor market distortions in a developing country," Journal of Development Economics, Elsevier, vol. 65(1), pages 135-152, June. [Downloadable!] (restricted)
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  8. Assaad, Ragui, 1997. "The Effects of Public Sector Hiring and Compensation Policies on the Egyptian Labor Market," World Bank Economic Review, Oxford University Press, vol. 11(1), pages 85-118, January.
  9. Beetsma, Roel & Bettendorf, Leon & Broer, Peter, 2003. "The budgeting and economic consequences of ageing in the Netherlands," Economic Modelling, Elsevier, vol. 20(5), pages 987-1013, September. [Downloadable!] (restricted)
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  1. Agenor, Pierre-Richard & Nabli, Mustapha K. & Yousef, Tarik M., 2005. "Public infrastructure and private investment in the Middle East and North Africa," Policy Research Working Paper Series 3661, The World Bank. [Downloadable!]
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