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The weak economic performance and insufficient and low-quality job creation in Tunisia is primarily the result of an economic environment permeated by distortions, barriers to competition, and excessive red tape, including in the labor market.
Tunisia has one of the highest unemployment rates within the Middle East and Central Asia. We look at the extent to which institutional factors explain those high unemployment levels. We also assess unemployment cyclicality, by looking at the determinants of labor market sensitivity to the output gap. We find that during the last decade the deterioration of institutional factors that affect labor demand explain not only about a quarter of the unemployment rate increase in Tunisia, but also Tunisia’s excess sensitivity of unemployment to the output gap. Our results suggest that an improved business environment and product market competition, increased labor market flexibility as well as reduced financial constraints and informality would help reduce Tunisia’s unemployment.
Tunisians are facing the worst crisis in a generation, as COVID-19 hit an economy that was already slowing down. Macroeconomic policy through fiscal stimulus and monetary easing limited the depth and severity of the recession, but the pandemic has exacerbated structural weaknesses, in particular low investment and job creation, high unemployment and informality, mismatch between skills demand and supply, and outward migration of high-skilled professionals.
This book investigates the socioeconomic factors that triggered Tunisia’s "revolution for dignity” and the current issues and challenges facing its economy while suggesting mechanisms and instruments for their resolution. The author begins by analyzing the roots of the revolution and the post-revolution situation from a political sociology perspective and then diagnoses the Tunisian economy before and after the revolution and identifies the multidimensional binding constraints preventing it from escaping the middle-income trap. The book then explores the pillars of an inclusive development strategy that Tunisia should pursue. The emphasis is made on building inclusive institutions, developing a new social contract and reinventing the country's leadership. Beyond the institutional dimension, the author suggests innovative financial channels, discusses the strategy of a successful integration of the Tunisian economy in the global economy as well as the pillars of its transformation into a knowledge-based economy.
The RuMiT (Rural Migration in Tunisia) research addresses the determinants of migration and mobility, the patterns and types of rural youth outmigration and the impact of rural youth migration on rural livelihoods and societies in origin regions in Tunisia. The research used a mixed-methods approach combining quantitative and qualitative methods, providing comparative insights into: international and internal migrants and non-migrants; pre- and post-2011 migrants; households with and without migrants. Main results show that migrants from rural areas are increasingly highly educated and leaving to pursue their studies abroad. This particularly applies to women, who also register a decrease in marriage-related migration. Migration proves to be rewarding for both internal and international migrants, in terms of occupational and social security outcomes. In particular, migrant women have higher labour market participation and employment rates than non-migrants. As a direct consequence of an emigration which is still male dominated, households with migrants are increasingly feminized, i.e. with a higher share of women, who are more likely to be active compared with women in nonmigrant households. Migrant households were also found to have higher access to social security. While incomes from remittances tend not to be invested in productive activities, evidence shows that one internal migrant out of four and one international migrant out of three has an economic activity in the areas of origin, which in most of the cases is connected with agricultural or animal production. The Rural Migration in Tunisia (RuMiT) research project was undertaken in the framework of the FAO project “Youth mobility, food security and rural poverty reduction: Fostering rural diversification through enhanced youth employment and better mobility” (GCP/INT/240/ITA) – in brief, the Rural Youth Migration (RYM) project – implemented in Tunisia and Ethiopia between 2015 and 2017, and funded by the Italian Development Cooperation.
This book explores the prospects for higher education development in the Middle East and North African (MENA) region. Adopting a South-South perspective (from the viewpoint of a developing country), it seeks to promote a deeper understanding of this colourful and highly diverse, yet volatile region. As such, it examines six selected MENA countries that serve as case studies for identifying the gaps and challenges as well as their potentials in terms of higher education development. Based on expert interviews and focus-group discussions with more than 85 individuals across the six countries and complemented by related facts and figures from both international and national documents, it presents an in-depth discussion and analysis of the countries’ respective political, security, and economic situations. These serve as preconditions for the cultivation of an environment conducive to facilitating the advancement of higher education. It also provides a critical overview of higher education in these countries, notably in terms of the current national system, legislative framework, accreditation, quality assurance, recognition concerns, and other critical issues that enable and/or constrain the development of their respective higher education sectors, and that of the region, as a whole.
This book demonstrates how rethinking and adapting basic employment services into labor intermediation services can help address the many labor market disconnections of developing country economies. It addresses how scarce resources required to escape poverty – good jobs, schools, and training - more often go to the privileged and well-connected than to those who need them most. With jobs now at the top of development debates, this is a rare book on how to practically adapt one key labor market policy to very different developing and emerging country markets. It shows through examples how developing countries can build in stages from basic employment services to diverse labor intermediation services – opening up job listings, stimulating public-private partnerships, and making job connections for those who don’t have a "cousin Vinny who knows a guy". This book is for policy practitioners, development organizations, and academics who are ready to think differently about one of the policies that needs to change so that developing economies can better meet the employment and higher skill challenges of the global age.
The popular uprisings in 2011 that overthrew Arab dictators were also a rebuke to crony capitalism, diverted against both rulers and their allied businessmen who monopolize all economic opportunities. While the Middle East has witnessed a growing nexus between business and politics in the wake of liberalization, little is discussed about the nature of business cronies, the sectors in which they operate, the mechanisms used to favour them, and the possible impact of such crony relations on the region's development. Combining inputs from leading scholars in the field, Crony Capitalism in the Middle East: Business and Politics from Liberalization to the Arab Spring presents a wealth of empirical evidence on the form and function of this aspect of the region. Crony Capitalism in the Middle East is unique in both its empirical focus and comparative scale. Analysis in individual chapters is empirically grounded and based on fine-grained data on the business activities of politically connected actors furnishing, for the first time, information on the presence, numerical strength, and activities of politically connected entrepreneurs. It also substantially enhances our understanding of the mechanisms used to privilege connected businesses, and their possible impact on undermining the growth of firms in the region. It offers a major advance on our prior knowledge of Middle Eastern political economy, and constitutes a distinct contribution to the global literature on crony capitalism and the politics of development. The book will be an essential resource for students, researchers, and policymakers alike.
The Tunisian Labor Market in an Era of Transition is a comprehensive examination of the central labor market issues facing this key Arab country. It includes contributions on the size, structure, and evolution of the labor force, the characteristics of labor demand, employment policies and regulations, and unemployment. Further chapters explore the wage formation process, gender differences in the labor market, the returns to education, child labor and schooling, and the trends and patterns of international migration from Tunisia. The Tunisian Labor Market in an Era of Transition is an essential reference on how youth employment, gender disparities, and informality contributed to political and social unrest in North African societies, and on the effect of migration flows from North Africa to Europe.
This book focuses on Arab youth marginalization along intersectional lines of gender, ethnicity and social class in four cities: Jerusalem, Amman, Cairo, and Tunis. The author explores how the political and economic climates in each city influence the life prospects of youth and uncovers their narratives around their aspirations, disappointments and life choices. Providing an interdisciplinary approach, the project will interest a wide range of audiences including graduate students, scholars, and policy makers in the fields of the Middle Eastern studies, political science, urban studies, and education.