Labor Market Dynamics in Tunisia: The Issue of Youth Unemployment

This paper analyzes the dynamics of the youth labor market in Tunisia using unique labor force survey data from 2005 to 2007 that include a longitudinal component. We show that sustained economic growth can reduce the youth unemployment rate by 15 percentage points over the next few years. Tourism is the sector with the highest potential to create jobs for the youth. Yet, the public sector remains the main provider of employment for the graduates, in particular for women. In the face of high turnover in the private sector, young graduates appear to be willing to experience long unemployment spells as they queue for high skill jobs in the public administration.