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Economic Brief - Labour market reforms in post-transition North Africa

19-Mar-2014

Key Messages

• North African countries’ labour market policies have produced a dual labour market, characterised by vast inequalities between formal and informal sector workers and between large and small firms.

• During the course of the recent crises that have struck the region, government policies for mitigating their impacts have led to a widening of group inequalities and in the weakening of already vulnerable groups.

• The growing divide between the ‘haves’ and the ‘have nots’, in a difficult environment characterised by rising living costs, heavy job destruction and increasingly binding constraints on job creation and new enterprise formation, was the main cause of the Arab Spring.

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