Economics, Econometrics and Finance
4 years ago

Mauritius Unemployment Soars: Labor Market Rigidities Blamed for Rising Rates

IMF Working Paper
Mauritius: Unemployment and the Role of Institutions
James Y. Yao, Calvin McDonald

Paper Summary

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Unemployment in Mauritius followed a "U"-curve pattern, dropping sharply in the 1980s but rising again by 2002. This was due to growth in higher-skilled sectors and labor market rigidities. To tackle this, policymakers should invest in education to match skills better and reform pay-setting institutions.