Jobs for shared prosperity: time for action in the Middle East and North Africa

Jobs are crucial for individual well-being. They provide a livelihood and, equally important, a sense of dignity. They are also crucial for collective well-being and economic growth. However, the rules and incentives that govern labor markets in Middle East and North Africa (MENA) countries have led to in efficient and inequitable outcomes, both individually and collectively. Several underlying distortions prevent a more productive use of human capital and have led to a widespread sense of unfairness and exclusion, of which the Arab Spring was a powerful expression. The Middle East and North Africa has a large reservoir of untapped human resources, with the world's highest unemployment rate among youth and the lowest participation of females in the labor force. Desirable jobs, defined as high paying or formal jobs, are few, and private employment is overwhelmingly of low added value. Overall, the region's labor markets can be characterized as being in efficient, inequitable, and locked in low productivity equilibrium.