How Does Employment Protection Legislation Affect Unemployment in Tunisia?: A Search Equilibrium Approach
18 Pages Posted: 3 Mar 2006
Date Written: May 2005
This paper applies a search matching model with firing restrictions to examine whether the existence of firing restrictions affects the outcome of the matching process and the natural rate of unemployment in Tunisia. The paper concludes that the removal of firing restrictions is likely to produce a favorable but limited impact on unemployment in Tunisia.
Keywords: Firing restrictions, job search, matching model, Tunisia, unemployment
JEL Classification: E24, J63, J64
Suggested Citation: Suggested Citation