Structural Change, Productivity, and Jobs Creation: Evidence from Tunisia

Abstract

Today over 22 percent of Tunisian population is between the age of 15 and 29, and fully 47 percent of the population is under 30. This significant youth bulge could have been a good opportunity for Tunisia to benefit from an abundant labor supply following the entry of young workers into the labor market. This means that consumption and additional tax revenue would increase leading to an adequate and stable funding of social programs and public investments. However, this economic dynamic neither worked nor have produced the expected results in terms of economic growth and employment.