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

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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  • Agenor, Pierre-Richard & Nabli, Mustapha K. & Yousef, Tarik & Jensen, Henning Tarp, 2007. "Labor market reforms, growth, and unemployment in labor-exporting countries in the Middle East and North Africa," Journal of Policy Modeling, Elsevier, vol. 29(2), pages 277-309.
    • Handle: RePEc:eee:jpolmo:v:29:y:2007:i:2:p:277-309
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    6. Tatiana Didier & M. Ayhan Kose & Franziska Ohnsorge & Lei Sandy Ye1, 2015. "Slowdown in Emerging Markets: Rough Patch or Prolonged Weakness?," Policy Research Notes (PRNs) 101741, The World Bank.
    7. Batyra, Anna & Sneessens, Henri R., 2010. "Selective reductions in labor taxation: Labor market adjustments and macroeconomic performance," Journal of Policy Modeling, Elsevier, vol. 32(4), pages 531-543, July.
    8. Alessio Tei & Claudio Ferrari, 2010. "Evoluzione dell'industria terminalistica per i servizi di linea nel mediteraneo. Implicazioni per la portualità nazionale," Working Papers 1008, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2010.
    9. Lim, King Yoong, 2019. "Modelling the dynamics of corruption and unemployment with heterogeneous labour," Economic Modelling, Elsevier, vol. 79(C), pages 98-117.
    10. Alessio Tei & Claudio Ferrari, 2010. "Evoluzione dell'industria terminalistica per i servizi di linea nel mediteraneo. Implicazioni per la portualità nazionale," Working Papers 10_8, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2010.
    11. 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.
    12. Saraçoğlu, Dürdane Şirin, 2020. "Do labour market policies reduce the informal economy more effectively than enforcement and deterrence?," Journal of Policy Modeling, Elsevier, vol. 42(3), pages 679-698.
    13. Shireen AlAzzawi & Vladimir Hlasny, 2020. "Vulnerable employment of Egyptian, Jordanian, and Tunisian youth: Trends and determinants," WIDER Working Paper Series wp-2020-166, World Institute for Development Economic Research (UNU-WIDER).
    14. Stampini Marco & Verdier-Chouchane Audrey, 2011. "Labor Market Dynamics in Tunisia: The Issue of Youth Unemployment," Review of Middle East Economics and Finance, De Gruyter, vol. 7(2), pages 1-35, September.
    15. Abiodun Moses Adetokunbo & Ochuwa Priscillia Edioye, 2020. "Response of economic growth to the dynamics of service sector in Nigeria," Future Business Journal, Springer, vol. 6(1), pages 1-10, December.
    16. Shahid Yusuf, 2014. "Middle East Transitions: A Long, Hard Road," IMF Working Papers 2014/135, International Monetary Fund.
    17. Berrittella, Maria, 2012. "Modelling the labour market of minority ethnic groups," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 389-402.
    18. Dalila NICET-CHENAF & Eric ROUGIER, 2014. "What is so specific with Middle-East and North-African pattern of growth and structural change? A quantitative comparative analysis," Cahiers du GREThA (2007-2019) 2014-23, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    19. Hesham AlShehabi, Omar, 2012. "Energy and labour reform: Evidence from Iran," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 441-459.
    20. Cuesta, Jose & Olivera, Mauricio, 2014. "The impact of social security reform on the labor market: The case of Colombia," Journal of Policy Modeling, Elsevier, vol. 36(6), pages 1118-1134.
    21. Pierre‐Richard Agénor, 2005. "The Macroeconomics Of Poverty Reduction," Manchester School, University of Manchester, vol. 73(4), pages 369-434, July.
    22. Spinesi, Luca, 2009. "Rent-seeking bureaucracies, inequality, and growth," Journal of Development Economics, Elsevier, vol. 90(2), pages 244-257, November.
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    24. Boeters, Stefan & Savard, Luc, 2013. "The Labor Market in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1645-1718, Elsevier.

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