THE DETERMINANTS OF LABOR DEMAND IN ALGERIA: AN ARDL APPROACH (1990-2018)

Abstract

One of the challenges facing the active category in Algeria is the lack of employment opportunities. If the labor supply exceeds labor demand, unemployment will result. The labor supply is largely controlled by demographic factors. Labor demand is influenced by determinants that can be controlled or managed. In this research paper, we tried to find the most determinants of labor demand in Algeria during the period 1990-2018. In the short and long-run, the most results did not differ from economic theory (except wage). We found that all the determinants in the model have a positive correlation with labor demand except public investment.