Investing in Youth: Tunisia

Strengthening the Employability of Youth during the Transition to a Green Economy

image of Investing in Youth: Tunisia

This report provides a detailed diagnosis of the youth labour market in Tunisia, including a focus on vocational education and training and entrepreneurship, and within the context of Tunisia's transition to a green economy. The report takes an international comparative perspective, offering policy options to help improve school-to-work transitions. It also provides an opportunity for other countries to learn from the innovative measures that Tunisia has taken to strengthen the skills of youth and their employment outcomes.

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Removing demand-side barriers to youth employment in Tunisia

This chapter discusses demand-side barriers to youth employment in Tunisia such as the cost of hiring (as determined by minimum wages, non-wage costs and collective bargaining institutions) and employment protection legislation. It also discusses policies currently in place to tackle such barriers (including wage subsidies) and offers a range of policy options to create more favourable conditions for employers to hire youth, while still ensuring decent wages as well as an adequate level of protection for workers. Key challenges identified in this chapter include: high wage floors introduced by sector wage agreements; a large gap in the level of remuneration and benefits between the public and private sectors, which causes public sector queuing and raises reservation wages; and very rigid employment protection legislation on permanent contracts combined with extremely flexible legislation on temporary contracts, resulting in a dual labour market, with temporary work acting as a trap rather than a stepping stone into more stable employment for Tunisian youth.

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