Why Has Unemployment in Algeria Been Higher than in MENA and Transition Countries?

August 1, 2007

Preview Citation

Format: Chicago

Kangni R Kpodar. Why Has Unemployment in Algeria Been Higher than in MENA and Transition Countries?, (USA: International Monetary Fund, 2007) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Employment, Labor productivity, Productivity, Unemployment, Unemployment rate

Keywords: Productivity growth, Wage, Worker, WP

Publication Details

Pages:

30
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2007/210
Stock No:

WPIEA2007210
ISBN:

9781451867749
ISSN:

1018-5941

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