Algeria's High Unemployment Linked to Low Labor Productivity, Not Market Rigidities.
The study looked at why unemployment in Algeria is higher than in other countries in the Middle East and North Africa region and transition countries. They found that lower growth in labor productivity in Algeria is linked to higher unemployment rates. However, recent positive changes in trade terms have helped Algeria improve its situation. The researchers also discovered that labor market rigidities and taxation do not seem to be the main reasons for Algeria's high unemployment. These findings were consistent across different statistical methods used in the study.