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

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  • Mr. Kangni R 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

  • Mr. Kangni R Kpodar, 2007. "Why Has Unemployment in Algeria Been Higher than in MENA and Transition Countries?," IMF Working Papers 2007/210, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2007/210
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    References listed on IDEAS

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    Cited by:

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    3. Alessandro Ruggieri, 2019. "Trade and labour market institutions: A tale of two liberalizations," Discussion Papers 2019-15, University of Nottingham, GEP.
    4. AfDB AfDB, 2011. "MDG Report 2011 - Full Report," MDG Report 334, African Development Bank.

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    Keywords

    WP; productivity growth; wage; worker;
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