Labor market dynamics and youth unemployment in the Middle East and North Africa : evidence from Egypt, Jordan and Tunisia

Abstract EN

Although it is well-established in the literature that unemployment is a labor market insertion problem in the Middle East and North Africa (MENA), the dynamics driving youth unemployment remain poorly understood.

Using panel and retrospective data from the Labor Market Panel Surveys in Egypt, Jordan and Tunisia, we are able to substantially improve our understanding of youth unemployment in MENA by studying flows into and out of employment and unemployment.

We also decompose trends in the unemployment rates in Egypt, Jordan, and Tunisia over the past decade into the contributions of individuals entering unemployment from outside the labor force and from previous employment, and changes in the duration of unemployment these individuals experience.

Models for the incidence and duration of unemployment illustrate the relationship between individuals’ characteristics and their unemployment dynamics.