Regional Employment Growth and Spatial Dependencies in Algeria

Abstract

An analysis of the determinants of Algerian industrial employment growth in a framework that includes a spatial dependency effect reveals that there is no convergence process between the Algerian regions. Nonetheless, a convergence club gathering three wilayates appears when spatial heterogeneity of industrial employment growth is considered. Furthermore, our paper demonstrates that the hydrocarbon and the construction and public works sectors did not have externality effects on local industrial employment growth. Accordingly, Algerian public plans had some impact on unemployment, but mainly on informal unemployment through the support of the construction and public work sector.