recent years, and permitted unemployment figures to remain low and skill premia not to sink, despite the shift in skill … structure. We run a retrospective simulation, looking at how unemployment and wages would have reacted had skill biased …

graduates’ unemployment in the MENA region. The article provides a prospective cost- effectiveness analysis of the impact of … unemployment through a multisectoral efficiency wage setting mechanism. The main finding is that a wage subsidy targeted at highly … enough to reduce significantly unemployment. Other policy options need to be considered. …