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Labor market reforms, growth, and unemployment in labor-exporting countries in the Middle East and North Africa, Volume 1
Author:Agenor, Pierre-Richard; Nabli, Mustapha K.; Yousef, Tarik; Jensen, Henning Tarp; Country:Europe, Middle East and North Africa;
Date Stored:2004/11/08Document Date:2004/01/01
Document Type:Policy Research Working PaperSubTopics:Environmental Economics & Policies; Economic Theory & Research; Banks & Banking Reform; Labor Policies; Labor Markets; Municipal Financial Management
Language:EnglishRegion:Europe and Central Asia; Africa; Middle East and North Africa
Report Number:WPS3328Collection Title:Policy Research working paper series ; no. WPS 3328
Volume No:1  

Summary: This paper studies the impact of labor market policies on growth and unemployment in labor-exporting countries in the Middle East and North Africa. The analysis is based on a framework that captures many of the main features of the labor market in these countries. We 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. Our 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.

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