Private Sector Job Creation in MENA: Prioritizing the Reform Agenda
38 Pages Posted: 8 Nov 2019
Date Written: September 2019
This paper examines the extent to which firms in selected MENA countries reported being constrained by the business environment around the time of the Arab Spring and the extent to which these constraints affected their employment performance. The results suggest that small firms in MENA faced more structural constraints than similar firms in other regions. We also find that MENA firms' weaker job creation can be explained in great part by the macroeconomic environment and structural constraints. Low GDP growth, falling external competitiveness, corruption, lack of access to finance and poor access to electricity are found to explain a significant part of the lack of employment growth in MENA firms compared to their peers.
Keywords: Labor market regulations, Labor productivity, Economic conditions, Job creation, Labor force, Bénédicte Baduel, Carolin Geginat and Gaëlle Pierre, WP, Mena, structural constraint, medium-sized firm, large firm, comparator
JEL Classification: D22, E24, J23, K30, K31, L25, K20, E2, E01, E62, Z
Suggested Citation: Suggested Citation