Labor Market Reforms, Growth, and Unemployment in Labor-Exporting Countries in the Middle East and North Africa

64 Pages Posted: 20 Apr 2016

See all articles by Pierre-Richard Agenor

Pierre-Richard Agenor

University of Manchester - School of Social Sciences

Mustapha K. Nabli

World Bank

Tarik Yousef

Georgetown University - Edmund A. Walsh School of Foreign Service (SFS)

Henning Tarp Jensen

University of Copenhagen - Institute of Economics

Date Written: May 2004

Abstract

Agenor, Nabli, Yousef, and Jensen study the impact of labor market policies on growth and unemployment in labor-exporting countries in the Middle East and North Africa. Their analysis is based on a framework that captures many of the main features of the labor market in these countries. The authors 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. Their 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.

This paper - a product of the Social and Economic Development Group, Middle East and North Africa Region - is part of a larger effort in the region to understand the impact of labor market reforms on growth and unemployment.

Suggested Citation

Agenor, Pierre-Richard and Nabli, Mustapha K. and Yousef, Tarik and Jensen, Henning Tarp, Labor Market Reforms, Growth, and Unemployment in Labor-Exporting Countries in the Middle East and North Africa (May 2004). World Bank Policy Research Working Paper No. 3328. Available at SSRN: https://ssrn.com/abstract=610373

Pierre-Richard Agenor

University of Manchester - School of Social Sciences ( email )

Oxford Road
Manchester, M13 9PL
United Kingdom

Mustapha K. Nabli

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Tarik Yousef

Georgetown University - Edmund A. Walsh School of Foreign Service (SFS) ( email )

Washington, DC 20057
United States
202-687-0347 (Phone)
202-687-7001 (Fax)

Henning Tarp Jensen (Contact Author)

University of Copenhagen - Institute of Economics ( email )

Studiestraede 6
DK-1455 Copenhagen K
Denmark

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