TY - JOUR
T1 - Labor market reforms, growth, and unemployment in labor-exporting countries in the Middle East and North Africa
AU - Agénor, Pierre-Richard
AU - Nabli, Mustapha K.
AU - Yousef, Tarik
AU - Jensen, Henning Tarp
N1 - JEL Classification: C68, D58, O11
PY - 2007
Y1 - 2007
N2 - A general equilibrium model is used to study the impact of labor market policies on growth, employment, urban inequality, and rural welfare in labor-exporting countries in the Middle East and North Africa. Various experiments are conducted, such as a reduction in payroll taxation, cuts in public sector wages and employment, and a reduction in trade unions' bargaining power. We find that overseas employment may, under certain circumstances, substitute for domestic informal sector employment as the main buffer in labor market adjustment. In addition, we argue that to foster broad-based welfare-enhancing job creation in the region, labor market reforms must take account of general equilibrium effects, including crowding-in effects on private investment and variations in income remittances and international migration patterns. Finally, we argue that labor market reforms should be viewed as a component of a more comprehensive program of structural reforms aimed at spurring growth and employment
AB - A general equilibrium model is used to study the impact of labor market policies on growth, employment, urban inequality, and rural welfare in labor-exporting countries in the Middle East and North Africa. Various experiments are conducted, such as a reduction in payroll taxation, cuts in public sector wages and employment, and a reduction in trade unions' bargaining power. We find that overseas employment may, under certain circumstances, substitute for domestic informal sector employment as the main buffer in labor market adjustment. In addition, we argue that to foster broad-based welfare-enhancing job creation in the region, labor market reforms must take account of general equilibrium effects, including crowding-in effects on private investment and variations in income remittances and international migration patterns. Finally, we argue that labor market reforms should be viewed as a component of a more comprehensive program of structural reforms aimed at spurring growth and employment
KW - Faculty of Social Sciences
KW - employment
KW - MENA
KW - unemployment rate
KW - IMMPA
U2 - 10.1016/j.jpolmod.2006.07.007
DO - 10.1016/j.jpolmod.2006.07.007
M3 - Journal article
SN - 0161-8938
VL - 29
SP - 277
EP - 309
JO - Journal of Policy Modeling
JF - Journal of Policy Modeling
IS - 2
ER -
