Event
Esther Mirjam Girsberger (University of Technology Sydney), "The Puzzle of Educated Unemployment in West Africa"
Tuesday, November 14, 2023 12:00to13:00
Leacock Building
Room 429, 855 rue Sherbrooke Ouest, Montreal, QC, H3A 2T7, CA
"The Puzzle of Educated Unemployment in West Africa"
(University of Technology Sydney)
November 14, 2023, 12:00 to 1:00 PM
Leacock 429
础产蝉迟谤补肠迟:听Many developing countries exhibit a puzzling pattern given their scarce human capital: unemployment rates increase with or are hump-shaped in education. We develop and estimate a model where educated unemployment arises from heterogeneous workers participating in a frictional labour market with three sectors (public, private and self-employment). We estimate that public sector distortions explain around two-thirds of educated unemployment in urban Burkina Faso and one-quarter in Senegal. We then simulate three equally costly policies. In contrast with public job creation and subsidies to self-employment income, subsidies for private sector vacancy creation effectively reduce educated unemployment and improve workers鈥� welfare.
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