Unemployment, especially youth unemployment, is a serious problem for the Republic of Congo. Despite the economic recovery and political stabilization in the last decade, insufficient employment has been created, leading to high unemployment rates, especially for the young population in urban...

The literature on unemployment has mostly focused on labor market issues while the impact of capital formation is largely neglected. Job-creation is often thought to be a matter of encouraging more employment on a given capital stock. In contrast, this paper explicitly deals with the long-run...