Private Sector Job Creation in MENA: Prioritizing the Reform Agenda

38 Pages Posted: 8 Nov 2019

See all articles by Bénédicte Baduel

Bénédicte Baduel

International Monetary Fund (IMF)

Carolin Geginat

World Bank

Gaëlle Pierre

International Monetary Fund (IMF)

Date Written: September 2019

Abstract

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

Baduel, Bénédicte and Geginat, Carolin and Pierre, Gaëlle, Private Sector Job Creation in MENA: Prioritizing the Reform Agenda (September 2019). IMF Working Paper No. 19/206, Available at SSRN: https://ssrn.com/abstract=3482289

Bénédicte Baduel (Contact Author)

International Monetary Fund (IMF) ( email )

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

Carolin Geginat

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Gaëlle Pierre

International Monetary Fund (IMF) ( email )

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

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