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Working Paper 158 - Tackling Graduate Unemployment through Employment Subsidies an Assessment of the SIVP Programme in Tunisia

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Abstract
High unemployment and disillusioned youth lie at the basis of the ‘Arab Spring’ which has recently swept through much of the Middle East and Northern Africa. Despite changes in governments, the root problem has not been solved and political leaders, aware of the delicate and potentially explosive situation, have put the issue high up the policy agenda. This paper evaluates Tunisia’s largest labour market programme, the SIVP: an employment subsidy aimed at university graduates. Using a tracer survey of the 2004 graduating cohort, a range of matching techniques are applied to estimate the effect of the programme on a number of labour market outcomes. Although selection into the programme is not random, we cannot rule out that graduates who benefited from a SIVP have better labour market outcomes than those who did not: they are less likely to be inactive, and less likely to be unemployed – an effect which is particularly strong for graduates at highest risk of being unemployed. The results do indicate, however, that the programme is poorly targeted and hence not very cost-effective. The paper ends with recommendations for re-designing the policy, as well as pointers for future research.

Suggested Citation

  • Stijn Broecke, 2012. "Working Paper 158 - Tackling Graduate Unemployment through Employment Subsidies an Assessment of the SIVP Programme in Tunisia," Working Paper Series 430, African Development Bank.
    • Handle: RePEc:adb:adbwps:430
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    Cited by:

    1. Imed Limam & Abdelwahab Ben Hafaiedh, 2017. "Education, Earnings and Returns to Schooling in Tunisia," Working Papers 1162, Economic Research Forum, revised 12 Jun 2017.
    2. Allais, Stephanie, 2023. "Why skills anticipation in African VET systems needs to be decolonized: The wide-spread use and limited value of occupational standards and competency-based qualifications," International Journal of Educational Development, Elsevier, vol. 102(C).
    3. Daniela-Emanuela D?n?cic?, 2017. "Higher Educated People And (Re)Employment Probability In Romania," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(45), pages 82-94, November.
    4. Lobanov, Mikhail (Лобанов, Михаил) & Zvezdvanovic-Lobanova, Jelena (Звезданович-Лобанова, Елена), 2017. "Specifics of Agricultural Policy in the Countries of Central-Eastern and South-Eastern Europe in 1990–2010s [Особенности Аграрной Политики В Странах Центрально- И Юго-Восточной Европы В 1990-2010-Х," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 3, pages 150-173, June.

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