youth unemployment and development

8/12/2019 Youth Unemployment and Development

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Atelier de recherche franco-allemand

Berlin, 5.-6.9.2013

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Chomage de jeunesse, ducation etd!elo""ement

#outh $nem"lo%ment, education andde!elo"ment


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&utline

Objective and research questions

Methodology

Findings

Summing up


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&'jecti!e and(esearch )uestions

analyse unemployment situation in SouthernMediterranean

identify factors and explain unemployment

evaluate impact of education on employment

assess effects of education and employment ondevelopment


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*ethodolog%

Literature review to describe unemployment situation in

Southern Mediterranean to identify the major causes of

unemployment

Comparative data analysis

to describe unemployment situations in otherdeveloping regions

to identify in which areas SouthernMediterranean is lagging

to explain how andor why SouthernMediterranean lagging in these areas


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$nderstanding$nem"lo%ment

!nemployment is an outcome of desequilibriumbetween labour supply and demand at a givenwage rate"

#ublic sector$ job creation %or labour demand&can be insensitive to price %i"e" wage rate&"

#rivate sector$ under the assumption of perfectcompetition' job creation %or labour demand& is

price sensitive"


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$nderstandingunem"lo%ment

Source$ (uthor)s own elaboration"


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+indings 1 $nem"lo%ment An &!er!ie/

Source$ (uthor)s own elaboration and *he +orld ,an-".ote$ Latest data available"

/igh unemployment rate in Southern Mediterranean"


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+indings 2 ome interesting

facts

0mpirical evidence presented by 1reishan%2344& and others shows that there is littleor no correlation between economic growth

and %un&employment"

*herefore' the results suggest that the

unemployment problem in SouthernMediterranean is most li-ely related tostructuralunemployment that cannot be

solved by simply boosting economic growth"


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+indings 3 dentif%ing factors of

unem"lo%ment

/igh population growth rate

#ublic sector expansion %used in the past&

5lobalisation and competition

S-ills mismatch


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+indings igh "o"ulation

gro/th rate

/igh population andlabour force rate inSouthernMediterranean"

Situation continues todeveloped in 0gypt andLebanon"

Source$ (uthor)s own elaboration and *he +orld ,an-"


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+indings 54"anding "u'lic

sector em"lo%ment


Compensation of employees %6 of expense&

Cultu

reof7

waitin

g8

9istortedly

high

sala

ry

:ob

securi

ty


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+indings 6oes social 'enefits "la%a role in unem"lo%ment7


Social contribution %6 of revenue&


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+indings 8ills mismatch m%th

Source$ (uthor)s own elaboration and +orld 0conomic Forum"

;uality of education %2344


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+indings :;here is the sills mismatch7

More than =3 percent of tertiary graduatesin Southern Mediterranean specialised inarts' social sciences' business' law and

humanities"

Less than >3 percent of them graduatedfrom natural science and engineering

faculties"

(rts

,usiness

Social Science Law

/umanities

.atural Science

0ngineering


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+indings 9


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+indings 10;hich s"ecific

areas to im"ro!e7

< Southern Mediterranean has less favourable businessenvironment than middle income group"

< four areas to improve to promote more competitiveprivate sector$

a& dealing with construction permits %2@"A= placingslag&

b& 5etting credit %2B"A@&c& ?egistering property %4="2&d& 0nforcing contracts %4="AA&

< equilibrate pay and productivity"

+i di 11


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+indings 11o/ to mae thela'our force more

com"etiti!e 7

Source$ (uthor)s own elaboration and +orld 0conomic Forum"

#ay and #roductivity' 2344


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+indings 12=lim"se into the%ouths> attitude

Source$ *he Silatech Dndex$ Eoices of oung (rabs' 2344"

Strengths$< increasingly educated< hardwor-ing' ambitious and career

youth unemployment and development

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