Why has Unemployment in Algeria Been Higher than in MENA and Transition Countries

32 Pages Posted: 14 Sep 2007

See all articles by Kangni Kpodar

Kangni Kpodar

International Monetary Fund (IMF)

Date Written: August 2007

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.

Keywords: Unemployment, Algeria, Labor markets, Taxation, Working Paper

Suggested Citation

Kpodar, Kangni, Why has Unemployment in Algeria Been Higher than in MENA and Transition Countries (August 2007). IMF Working Paper No. 07/210, Available at SSRN: https://ssrn.com/abstract=1012993

Kangni Kpodar (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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