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Efficiency Frontier and Matching Process on the Labour Market: Evidence from Tunisia

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  • Anis Bou Abid
  • Imed Drine

Abstract

This paper studies the determinants of the inefficient functioning of the Tunisian labour market. The study takes advantage of recent developments in the stochastic frontier techniques and estimates the matching function for Tunisia using disaggregated data. We include control variables as determinants of matching efficiency and regional disparities. We confirm that the persistently high rate of unemployment is the result of not only excess labour supply but is also related to a shortfall between supply and demand, i.e. sector, location, qualification.

Suggested Citation

  • Anis Bou Abid & Imed Drine, 2010. "Efficiency Frontier and Matching Process on the Labour Market: Evidence from Tunisia," WIDER Working Paper Series 123, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp2010-123
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Hailu, Kidanemariam Berhe & Tanaka, Makoto, 2015. "A “true” random effects stochastic frontier analysis for technical efficiency and heterogeneity: Evidence from manufacturing firms in Ethiopia," Economic Modelling, Elsevier, vol. 50(C), pages 179-192.
    2. Kasrin Zein & Lang Guenter, 2013. "Estimating the Beveridge Curve of Egypt: An Econometric Study for the Period 2004 to 2010," Review of Middle East Economics and Finance, De Gruyter, vol. 8(3), pages 1-16, January.
    3. Sami Saafi & Meriem Haj mohamed & Abdeljelil Farhat, 2015. "Is there a causal relationship between unemployment and informal economy in Tunisia: evidence from linear and non-linear Granger causality," Economics Bulletin, AccessEcon, vol. 35(2), pages 1191-1204.
    4. Elzbieta Antczak & Ewa Galecka-Burdziak & Robert Pater, 2016. "Efficiency in spatially disaggregated labour market matching," Working Papers 2016-010, Warsaw School of Economics, Collegium of Economic Analysis.
    5. Ruesga, Santos M. & Da Silva Bichara, Julimar & Pérez Trujillo, Manuel, 2015. "La Gran Recesión y sus efectos sobre la eficiencia del mercado laboral. Un estudio aplicado a nivel regional para determinar el mismatch agregado en España /The Great Recession and its Effects on Labo," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 33, pages 175-200, Enero.

    More about this item

    Keywords

    labour market; structural unemployment; technical efficiency; matching across regions; developing country;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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