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Job Creation through Infrastructure Investment in the Middle East and North Africa

ACCOUNTABILITY ACTIVE LABOUR ACTIVE LABOUR MARKET ACTUAL COST AVERAGE WAGES BALANCED BUDGETS BRIDGE BRIDGE CONSTRUCTION CLIMATE CHANGE COST OF CAPITAL CREATING JOBS DEADWEIGHT DEADWEIGHT LOSS DEBT DISPLACEMENT DISPLACEMENT EFFECTS DRIVERS ECONOMIC BENEFITS ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMICS ELASTICITIES ELASTICITY ELECTRICITY EMPLOYABILITY EMPLOYMENT EMPLOYMENT EFFECT EMPLOYMENT EFFECTS EMPLOYMENT IMPACT EMPLOYMENT MULTIPLIER EMPLOYMENT OPPORTUNITIES EMPLOYMENT SHARE EMPLOYMENT SUBSIDIES EMPLOYMENT SUBSIDY ENVIRONMENTAL COSTS EQUILIBRIUM LABOR MARKET OUTCOMES FEMALE LABOR FEMALE LABOR FORCE FIRING COSTS FISCAL BALANCE FUEL FUEL PRICES GOVERNMENT DEBT GROSS DOMESTIC PRODUCT HIGHWAY HIGHWAYS HOUSING HUMAN RESOURCES INCOME INDUSTRIAL LABOR INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE PROJECTS INFRASTRUCTURES INVESTMENT SPENDING JOB CREATION JOB LOSSES JOB SKILLS JOBS LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET CHARACTERISTICS LABOR MARKET FLEXIBILITY LABOR MARKETS LABOR REDUNDANCY LABOR RELATIONS LABOUR LABOUR MARKET LABOUR POLICY LIVING STANDARDS LOCAL LABOR MARKET LOCAL ROADS LONG-RUN EMPLOYMENT LONG-TERM EMPLOYMENT MONITORING COSTS NATIONAL INFRASTRUCTURE POLITICAL ECONOMY POPULATION DENSITY POPULATION GROWTH PORTS PRIVATE ENTERPRISE PRIVATE PARTNERSHIPS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC PUBLIC FINANCE PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SPENDING PUBLIC WORKS RAILWAY RAILWAYS REGULAR JOBS ROAD ROAD NETWORK ROADS RURAL TRANSPORT SANITATION SHORT-TERM JOB CREATION SOCIAL COHESION SOCIAL WELFARE SUBSIDIZED EMPLOYMENT SUBSIDIZED EMPLOYMENT PROGRAMS SUBSIDIZED JOB SUBSTITUTION EFFECTS TAX TELECOMMUNICATIONS TEMPORARY EMPLOYMENT TOTAL EMPLOYMENT TRAFFIC TRAINING PROGRAMS TRANSPORT TRANSPORT IMPROVEMENT TRANSPORTATION UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT PROBLEM UNEMPLOYMENT RATE UNSKILLED WORKERS UNSUBSIDIZED JOBS URBANIZATION WAGE LEVELS WAGE STRUCTURE WAGE SUBSIDIES WATER SUPPLY WELFARE RECIPIENTS WORKER WORKERS
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World Bank, Washington, DC
Middle East and North Africa
2012-12-12T15:45:07Z | 2012-12-12T15:45:07Z | 2012-08

In the next 10 years or so, the infrastructure sector has the potential to generate significant employment. This paper estimates annual job creation of about 2.0 million in direct jobs and 2.5 million in direct, indirect and induced infrastructure-related jobs just by meeting the infrastructure investment needs of about 6.9 percent of gross domestic product (about US$106 billion) for the Middle East and North Africa region on average. The breakdown in expected needs is 11 percent in developing oil exporters, 6 percent in oil importing countries, and 5 percent in the Gulf Cooperation Council oil exporters. Needs are particularly high in electricity and roads. While important, infrastructure job creation will not resolve the region's unemployment problem alone and its job creation potential varies greatly across countries. Moreover, the current ability to finance and hence meet the infrastructure needs varies significantly across countries. Oil importers are likely to fall short under business as usual scenarios. In a region in which the public sector is the main source of infrastructure financing, fiscal choices will thus matter to job creation through infrastructure. But there are more challenges, including the governance of job creation, and the proper targeting and costing of subsidies for job creation and the (re)training programs needed. Managing expectations will also matter, as infrastructure jobs will help but will not solve the region's unemployment and underemployment problems.

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