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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.

Suggested Citation

  • Kangni KPODAR, 2008. "Why Has Unemployment in Algeria Been Higher than in MENA and Transition Countries?," Working Papers 200803, CERDI.
    • Handle: RePEc:cdi:wpaper:959
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    1. Almosabbeh, Imadeddin, 2008. "العوامل المؤثرة في البطالة في الجمهورية العربية السورية دراسة تطبيقية باستخدام منهجية التكامل المشترك [The Effective Factories in Unemployment in the Syrian Arab Republic: An Empirical Study by Usi," MPRA Paper 41871, University Library of Munich, Germany.
    2. World Bank, 2010. "Fertility Decline in Algeria 1980-2006," World Bank Publications - Reports 27492, The World Bank Group.
    3. AfDB AfDB, 2011. "MDG Report 2011 - Full Report," MDG Report 334, African Development Bank.

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