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Labor market reforms, growth, and unemployment in labor-exporting countries in the Middle East and North Africa

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  • Agenor, Pierre-Richard
  • Nabli, Mustapha K.
  • Yousef, Tarik
  • Jensen, Henning Tarp

Abstract

This paper studies the impact of labor market policies on growth and unemployment in labor-exporting countries in the Middle East and North Africa. The analysis is based on a framework that captures many of the main features of the labor market in these countries. We conduct a variety of policy experiments, including a reduction in payroll taxation, cuts in public sector wages and employment, an increase in employment subsidies, a reduction in trade unions'bargaining power, and a composite reform program. Our key message is that to foster broad-based growth and job creation in the region, labor market reforms must not be viewed in isolation but rather as a component of a comprehensive program of structural reforms.

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  • Agenor, Pierre-Richard & Nabli, Mustapha K. & Yousef, Tarik & Jensen, Henning Tarp, 2004. "Labor market reforms, growth, and unemployment in labor-exporting countries in the Middle East and North Africa," Policy Research Working Paper Series 3328, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3328
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    Cited by:

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    3. Stefan Boeters & Luc Savard, 2011. "The Labour Market in CGE Models," Cahiers de recherche 11-20, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    4. Rougier, Eric, 2016. "“Fire in Cairo”: Authoritarian–Redistributive Social Contracts, Structural Change, and the Arab Spring," World Development, Elsevier, vol. 78(C), pages 148-171.
    5. Saraçoğlu, Dürdane Şirin, 2020. "Do labour market policies reduce the informal economy more effectively than enforcement and deterrence?," Journal of Policy Modeling, Elsevier, vol. 42(3), pages 679-698.
    6. Batyra, Anna & Sneessens, Henri R., 2010. "Selective reductions in labor taxation: Labor market adjustments and macroeconomic performance," Journal of Policy Modeling, Elsevier, vol. 32(4), pages 531-543, July.
    7. Shireen AlAzzawi & Vladimir Hlasny, 2020. "Vulnerable employment of Egyptian, Jordanian, and Tunisian youth: Trends and determinants," WIDER Working Paper Series wp-2020-166, World Institute for Development Economic Research (UNU-WIDER).
    8. Arup Mitra & Chandan Sharma, 2014. "Technology Intensity and Global Competitiveness: Issues in Labour Cost and Employment," Working Papers id:6217, eSocialSciences.
    9. Stampini Marco & Verdier-Chouchane Audrey, 2011. "Labor Market Dynamics in Tunisia: The Issue of Youth Unemployment," Review of Middle East Economics and Finance, De Gruyter, vol. 7(2), pages 1-35, September.
    10. Henning Tarp Jensen & Sherman Robinson & Finn Tarp, 2010. "Measuring Agricultural Policy Bias: General Equilibrium Analysis of Fifteen Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 1136-1148.
    11. Abiodun Moses Adetokunbo & Ochuwa Priscillia Edioye, 2020. "Response of economic growth to the dynamics of service sector in Nigeria," Future Business Journal, Springer, vol. 6(1), pages 1-10, December.
    12. Shahid Yusuf, 2014. "Middle East Transitions: A Long, Hard Road," IMF Working Papers 2014/135, International Monetary Fund.
    13. Berrittella, Maria, 2012. "Modelling the labour market of minority ethnic groups," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 389-402.
    14. Dalila NICET-CHENAF & Eric ROUGIER, 2014. "What is so specific with Middle-East and North-African pattern of growth and structural change? A quantitative comparative analysis," Cahiers du GREThA (2007-2019) 2014-23, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    15. Tatiana Didier & M. Ayhan Kose & Franziska Ohnsorge & Lei Sandy Ye1, 2015. "Slowdown in Emerging Markets: Rough Patch or Prolonged Weakness?," Policy Research Notes (PRNs) 101741, The World Bank.
    16. Abiodun Moses Adetokunbo & Iddey Josephine Yusuf, 2024. "Economic openness, institutional quality and economic growth in Nigeria," SN Business & Economics, Springer, vol. 4(7), pages 1-21, July.
    17. Hesham AlShehabi, Omar, 2012. "Energy and labour reform: Evidence from Iran," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 441-459.
    18. Cuesta, Jose & Olivera, Mauricio, 2014. "The impact of social security reform on the labor market: The case of Colombia," Journal of Policy Modeling, Elsevier, vol. 36(6), pages 1118-1134.
    19. Lim, King Yoong, 2019. "Modelling the dynamics of corruption and unemployment with heterogeneous labour," Economic Modelling, Elsevier, vol. 79(C), pages 98-117.
    20. Pierre‐Richard Agénor, 2005. "The Macroeconomics Of Poverty Reduction," Manchester School, University of Manchester, vol. 73(4), pages 369-434, July.
    21. Alessio Tei & Claudio Ferrari, 2010. "Evoluzione dell'industria terminalistica per i servizi di linea nel mediteraneo. Implicazioni per la portualità nazionale," Working Papers 1008, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2010.
    22. Alessio Tei & Claudio Ferrari, 2010. "Evoluzione dell'industria terminalistica per i servizi di linea nel mediteraneo. Implicazioni per la portualità nazionale," Working Papers 10_8, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2010.
    23. Spinesi, Luca, 2009. "Rent-seeking bureaucracies, inequality, and growth," Journal of Development Economics, Elsevier, vol. 90(2), pages 244-257, November.
    24. Rafik Bouklia-Hassane & Fatiha Talahite, 2008. "Marché du travail, régulation et croissance économique en Algérie," Revue Tiers-Monde, Armand Colin, vol. 0(2), pages 413-437.
    25. Boeters, Stefan & Savard, Luc, 2013. "The Labor Market in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1645-1718, Elsevier.

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