Publication: Infrastructure and Employment Creation in the Middle East and North Africa
Date
2013-01-17
ISSN
Published
2013-01-17
Author(s)
Abstract
The state of national labor markets has
always been a concern for governments and development
agencies such as the World Bank. Key labor market
indicators, such as the rate of unemployment, send signals
about the health of an economy and mirror citizens'
attitudes. Being gainfully employed is an important aspect
of an individual's well-being both financially and
socially, as 'initial failures in finding a job can
lead to persistent joblessness, a loss of interest in
further schooling, delayed family formation, mental
distress, and negative manifestations of citizenship'
(World Bank 2007). Increased expenditure on infrastructure
projects has a short-run effect on employment creation as
more workers are hired to build infrastructure. These jobs
last only during the investment phase of the project, and,
without a continuous injection as in a stimulus-type
program, such jobs will be temporary. However, the
investment program will have created a larger stock of
infrastructure capital and this permanent addition
facilitates additional growth in the economy. The extra
demand from this incremental growth creates more jobs, and
these tend to be permanent. Furthermore, an employment
experience in an infrastructure-related employment program,
even if temporary, might improve the chance of being
re-employed at a later date. This study capitalizes on the
World Bank's long-standing knowledge on infrastructure,
employment, and growth and applies it to the case of MENA to
assess the employment creation potential of infrastructure investment.
Citation
“Estache, Antonio; Ianchovichina, Elena; Bacon, Robert; Salamon, Ilhem. 2013. Infrastructure and Employment Creation in the Middle East and North Africa. Directions in development;infrastructure. © Washington, DC: World Bank. http://openknowledge.worldbank.org/entities/publication/277b3072-926b-5216-a444-b97e6093f5c4 License: CC BY 3.0 IGO.”