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Unemployment and Labor Market Issues in Algeria

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  • Davide Furceri

Abstract

The aim of this paper is to analyze unemployment and labor market developments in Algeria and assess the factors that may hamper employment creation. The results of the paper suggest that the relative low output-employment elasticities and rigid labor market are the main factors behind the still high level of unemployment, particularly among the youth. Simulation analyses, based on the results on the relation between labor market institutions and unemployment, show that improvement in labor market conditions in Algeria would be key in reducing unemployment both in the short- and medium-term.

Suggested Citation

  • Davide Furceri, 2012. "Unemployment and Labor Market Issues in Algeria," IMF Working Papers 12/99, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:12/99
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    References listed on IDEAS

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    1. David R. Howell, Miriam Rehm, 2009. "WP 2009-9 Unemployment Compensation and High European Unemployment: A Reassessment with New Benefit Indicators," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2009-9, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    2. Luca Nunziata, 2002. "Unemployment, Labour Market Institutions and Shocks," Economics Papers 2002-W16, Economics Group, Nuffield College, University of Oxford.
    3. Gilles Mourre, 2006. "Did the pattern of aggregate employment growth change in the euro area in the late 1990s?," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1783-1807.
    4. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Economics Department Working Papers 486, OECD Publishing.
    5. Juan C. Botero & Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "The Regulation of Labor," The Quarterly Journal of Economics, Oxford University Press, pages 1339-1382.
    6. Lorenzo E Bernal-Verdugo & Davide Furceri & Dominique Guillaume, 2012. "Labor Market Flexibility and Unemployment: New Empirical Evidence of Static and Dynamic Effects," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(2), pages 251-273, June.
    7. Afonso, António & Furceri, Davide, 2010. "Government size, composition, volatility and economic growth," European Journal of Political Economy, Elsevier, vol. 26(4), pages 517-532, December.
    8. Andrea Bassanini & Romain Duval, 2009. "Unemployment, institutions, and reform complementarities: re-assessing the aggregate evidence for OECD countries," Oxford Review of Economic Policy, Oxford University Press, vol. 25(1), pages 40-59, Spring.
    9. Davide Furceri & Lorenzo E. Bernal-Verdugo & Dominique M. Guillaume, 2012. "Crises, Labor Market Policy, and Unemployment," IMF Working Papers 12/65, International Monetary Fund.
    10. Horst Feldmann, 2006. "Government Size and Unemployment: Evidence from Industrial Countries," Public Choice, Springer, vol. 127(3), pages 443-459, June.
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    Cited by:

    1. Harkat, Tahar & Driouchi, Ahmed, 2017. "Demographic Dividend & Economic Development in Arab Countries," MPRA Paper 82880, University Library of Munich, Germany.
    2. Aleksynska, Mariya., 2014. "Deregulating labour markets : how robust is the analysis of recent IMF working papers?," ILO Working Papers 994849663402676, International Labour Organization.
    3. KORI YAHIA, Abdellah, 2018. "Estimation of Okun Coefficient for Algeria," MPRA Paper 83707, University Library of Munich, Germany.

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