Algeria's unemployment relatively high

This paper considers the determinants of labour market performance in Algeria.

The authors suggest that if the model is estimated with panel data on a sample of Middle Eastern, North African and transition countries for 1995 to 2005, it can be demonstrated that lower growth in labour productivity in Algeria is associated with higher unemployment than the sample average.

However, recent positive terms of trade results have helped Algeria reduce the differential. Labour market rigidities and

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