Efficiency frontier and matching process on the labour market: Evidence from Tunisia

Abstract

This paper studies the determinants of the inefficient functioning of the Tunisian labour market. The study takes advantage of recent developments in the stochastic frontier techniques and estimates the matching function for Tunisia using disaggregated data. We include control variables as determinants of matching efficiency and regional disparities. We confirm that the persistently high rate of unemployment is the result of not only excess labour supply but is also related to a shortfall between supply and demand, i.e. sector, location, qualification.

Relationship Between Inflation and Real Economic Growth in Rwanda

“…Abid and Drine (2011) studied the determinants of the inefficient functioning of the Tunisian labor market. They took advantage of recent developments in stochastic frontier techniques and estimated the matching function for Tunisia using disaggregated data.…”

Regional labour markets in Spain: Can flexibility and local democracy reduce inefficiencies?

“…Moreover, they suggest that inefficiencies in the matching process are determined by the composition of the labour market with respect to the age and education structure, as well as the current labour market conditions. Abid and Drine () also investigate the determinants of the inefficient functioning of the market. Using Tunisian data, they find that persistence unemployment may be interpreted as the inefficiency of the matching process.…”

“…Since our aim is indicate to the policy‐maker which actions are advisable, we focus on the matching function, a useful tool that relates the flow of new hires observed monthly during the period 2006–2012 in Spain to the stock of vacancies and the number of unemployed job seekers. Following the previous literature (e.g., Abid & Drine, ; Coles & Petrongolo, ; Fahr & Sunde, ; Ilmakunnas & Pesola, ; Warren, ), we apply a stochastic production frontier approach to model the matching function. Thus, the matching function represents the maximum achievable number of job market matches (frontier production function), given the number of job seekers and vacancies.…”

What Affects Efficiency in Labour Market Matching at Different Territorial Aggregation Levels in Poland?

“…The efficiency deteriorates with unemployment duration (Burgess, 1993;Lehmann, 1995) and with spatial autocorrelation; it is also lower between travel-to-work areas than within them (Burda and Profit, 1996;Fahr and Sunde, 2005;Coles and Smith, 1996). Other factors that affect the efficiency of matching are: demographic characteristics, occupation and education (Ibourk et al, 2004;Fahr and Sunde, 2001;Abid and Drine, 2011), as well as regional and sectoral specificity (Altavilla and Caroleo, 2013;Broersma and van Ours, 1999;Fahr and Sunde, 2005;Robson, 2006).…”