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The Impact of the Action Plan for Promoting Employment and Combating Unemployment on Employment Informality in Algeria

Listed author(s):
  • Souag, Ali

    (University of Mascara)

  • Assaad, Ragui

    ()

    (University of Minnesota)

Registered author(s):

    This paper examines whether the Action Plan for Promoting Employment and Combating Unemployment, a labor market intermediation program adopted by the Algerian government in 2008, reduced the informality of employment in Algeria. Using repeated cross-section data from the Household Survey on Employment for the period from 1997 to 2013, and a difference-in-difference methodology, we estimate whether the Action Plan has reduced the probability that workers are employed informally in enterprises of more than 5 workers – the type of enterprise that is most likely to be directly affected by the Action Plan. Our results show that the Action Plan has in fact contributed to reducing employment informality in such enterprises, but with heterogeneous effects. More precisely, it reduced informality for employees of establishments of 10 workers or more but had no significant effects on informality for those working in enterprises of 5 to 9 workers. Furthermore, when we restrict our estimates to new entrants only, we do not find statistically significant effects.

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    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 10966.

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    Length: 24 pages
    Date of creation: Aug 2017
    Handle: RePEc:iza:izadps:dp10966
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    1. Haltiwanger, John C. & Scarpetta, Stefano & Schweiger, Helena, 2006. "Assessing Job Flows across Countries: The Role of Industry, Firm Size and Regulations," IZA Discussion Papers 2450, Institute for the Study of Labor (IZA).
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    8. Richard Freeman, 2005. "Labour market institutions without blinders: The debate over flexibility and labour market performance," International Economic Journal, Taylor & Francis Journals, vol. 19(2), pages 129-145.
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    10. repec:dau:papers:123456789/4310 is not listed on IDEAS
    11. Philippe ADAIR & Youghourta BELLACHE, 2012. "Emploi Et Secteur Informels En Algérie : Déterminants, Segmentation Et Mobilité De La Main-D’Œuvre," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 35, pages 121-149.
    12. Abraham, Katharine G, 1983. "Structural-Frictional vs. Deficient Demand Unemployment: Some New Evidence," American Economic Review, American Economic Association, vol. 73(4), pages 708-724, September.
    13. Mohamed Ali Marouani, 2010. "More jobs for university graduates: some policy options for Tunisia," Applied Economics Letters, Taylor & Francis Journals, vol. 17(10), pages 933-937.
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