How Does Employment Protection Legislation Affect Unemployment in Tunisia?: A Search Equilibrium Approach

Koranchelian, Taline; Fanizza, Domenico

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How Does Employment Protection Legislation Affect Unemployment in Tunisia?: A Search Equilibrium Approach

IMF Working Paper No. 05/92

18 Pages Posted: 3 Mar 2006

See all articles by Taline Koranchelian

Domenico Fanizza

International Monetary Fund (IMF) - Middle East and Central Asia Department

Date Written: May 2005

Abstract

This paper applies a search matching model with firing restrictions to examine whether the existence of firing restrictions affects the outcome of the matching process and the natural rate of unemployment in Tunisia. The paper concludes that the removal of firing restrictions is likely to produce a favorable but limited impact on unemployment in Tunisia.

Keywords: Firing restrictions, job search, matching model, Tunisia, unemployment

JEL Classification: E24, J63, J64

Suggested Citation: Suggested Citation

Koranchelian, Taline and Fanizza, Domenico, How Does Employment Protection Legislation Affect Unemployment in Tunisia?: A Search Equilibrium Approach (May 2005). IMF Working Paper No. 05/92, Available at SSRN: https://ssrn.com/abstract=888138