Economic Research Forum (ERF)

Caroline Krafft

Founding contributors

Caroline Krafft
Associate Professor, Humphrey School of Public Affairs, University of Minnesota

Dr. Caroline Krafft is an associate professor at the Humphrey School of Public Affairs at the University of Minnesota. She received her master’s degree in public policy from the Humphrey School and her PhD from the Department of Applied Economics at the University of Minnesota. Her research examines issues in development economics, primarily labor, education, health, and inequality in the Middle East and North Africa. Current projects include work on green jobs, conflict and displacement, gender and labor markets, living and minimum wages, social protection policy, and education quality and inequality.

Content by this Author

The evolution of labour supply in Egypt

Egypt stands at a critical point in its demographic and labour market evolution. As this column explains, while fertility rates have dropped, reducing long-term demographic pressures, the ‘echo generation’, children of the youth bulge, will soon enter the labour market, intensifying the need for policies to accelerate job creation. At the same time, participation in the labour force, particularly among women and young people, is declining, partly as a result of discouragement.

Egypt’s labour market: new survey data for evidence-based decision-making

As Egypt faces substantial social and economic shifts, understanding the labour market is crucial for designing policies that promote employment and inclusive economic growth. This column introduces the latest wave of the Egypt Labor Market Panel Survey, which provides fresh, nationally representative data that are vital for examining these dynamics.

The decline of social insurance in Egypt: directions for reform

The longstanding challenge for the Egyptian economy of providing its workers with decent, formal, socially insured jobs has become even more difficult. As this column explains, informality has been rising rather than falling, with a substantial reduction in social insurance coverage for the employed since the late 1990s. Reforms are needed to reverse this decline.

Egypt’s care economy needs to address deteriorating working conditions

A robust and high-quality care economy is critical for supporting women’s employment – as both an employer of women and a mechanism for redistributing unpaid care work to the market. Yet in Egypt, despite national goals of expanding care services, employment in the sector has been shrinking, while becoming increasingly privatised. As this column reports, care jobs have also experienced worsening conditions of work, including reduced formality and the emergence of a pay penalty for care workers.

Sudan’s labour market in an era of shocks

After a decade of economic and political shocks, the newly available Sudan Labor Market Panel Survey of 2022 provides the first data on households and the labour market for over a decade. This column presents some of its key findings. The country continues to grapple with long-run labour market challenges, such as a high fertility rate, low school enrolment and limited labour force participation among women. After years of political turmoil, as well as the Covid-19 pandemic and recent internal conflict, it is vital that Sudanese policy-makers are able to make evidence-based decisions to help the country to prosper.

Sudan’s labour market: new data in turbulent times

With Sudan experiencing numerous economic and political shocks over the past decade, a lack of labour market and household data has made it difficult for policy-makers to make evidence-based decisions. This column presents new nationally representative survey data, which have been long anticipated and are now publicly available: the Sudan Labor Market Panel Survey 2022.

Jobs and growth in North Africa in the Covid-19 era: Sudan, 2018-21

Sudan’s labour market faced a number of challenges even prior to the pandemic. Economic difficulties, including rampant inflation, and political instability contributed to continuing under-utilisation of the country’s labour force during Covid-19; and employment continues to be primarily self-employment in agriculture. Political stability is a pre-requisite for addressing Sudan’s economic and labour market challenges.

Jobs and growth in North Africa during Covid-19

At the onset of the pandemic, employment rates contracted sharply in North African countries. As the column explains, employment rates have generally recovered since then, but hours of work and incomes have not. Informal wage workers, farmers and the self-employed have faced a particularly hard struggle. In anticipation of future crises, the region requires a robust and shock-responsive social protection system.

Employment in MENA during the pandemic: persistent inequality

While employment rates in countries in the Middle East and North Africa have largely recovered since the initial shock of the pandemic, wages and hours of work have been more variable in response to changing economic conditions. As research reported in this column shows, non-wage and informal wage workers have been particularly vulnerable to the negative impacts of Covid-19.

Women’s employment and care work in MENA during the pandemic

Across the world, Covid-19 and associated policy measures that closed schools and nurseries led to increased care work for married women in households with young or school-aged children. But as research reported in this column shows, in the Middle East and North Africa, married women had already selected out of the types of work that were difficult to reconcile with care work, with the result that married women did not exit employment disproportionately during the pandemic.

The impact of Covid-19 on labour markets in MENA

Employment is recovering but income losses persist in MENA countries in the second year of the pandemic. Two recent ERF policy briefs summarised in this column illustrate the mix of recovery and ongoing challenges for households and firms.

Gender and economic vulnerability in Egypt’s labour market

The past decade has presented both new challenges and new opportunities for the Egyptian labour market. This column outlines the findings of a new book focused on the extent to which the country has been able to create good jobs for its growing population, as well as particular issues facing women and vulnerable groups in the world of work. The analysis draws on data from the latest Egypt Labor Market Panel Survey, conducted in 2018.

Vulnerable workers in MENA a year into the pandemic

How are labour markets in the Middle East and North Africa performing a year into the pandemic? This column assesses the impact of the crisis on employment and earnings using data from the second wave of the ERF Covid-19 MENA monitor surveys in Egypt, Jordan, Morocco and Tunisia. There are glimmers of progress but persistent problems in these four countries’ labour markets.

The impact of Covid-19 on labour markets: evidence from Morocco and Tunisia

How is the Covid-19 crisis affecting jobs and business in the MENA region? This column reports evidence from mobile phone surveys carried out in November in Morocco and Tunisia. The results, reported in a new ERF Policy Brief, indicate that vulnerable workers, small entrepreneurs and farmers have borne the brunt of the pandemic.

Covid-19 aggravates Jordan’s acute youth employment challenges

The tough response by Jordan’s government to the global pandemic has protected public health but exacted a sharp economic toll in a country that was already struggling to cope with high youth unemployment and a huge influx of refugees from Syria. This column calls for an urgent international effort to assist the Jordanian government in ensuring a dignified future for vulnerable young people and refugees.

Moving to opportunity: internal migration and education in Egypt

Internal migration has the potential either to improve or to hinder educational opportunities. In Egypt, rates of internal migration are low and it is undertaken primarily by adults who have finished their education and are moving to work or marry. This column reports research evidence showing that the children of rural to urban migrants stay longer in school and complete more education. The improved economic situation of their migrant parents plays an important role in their persistence in school.

Supporting women’s livelihoods in Egypt: opportunities and challenges

Despite the rising educational attainment of women in Egypt, their employment has declined over time and many face multiple constraints on their engagement in the labour market. This column explores ways of increasing women’s assets and economic empowerment that may ultimately lead to Egypt being as equitable in employment attitudes and practices as it is in education.

Labour supply in Egypt: untapped potential

Labour force participation has decreased for both men and women in Egypt. This column reports the latest data, noting that the potential contributions of a large share of the country’s increasingly educated population are untapped. Creating a conducive business environment that can generate good jobs is critically important to engaging all of Egypt’s human potential.

The future of Egypt’s population: opportunities and challenges

Egypt’s potential labour supply depends on the growth and changing composition of its working-age population. This column reports the latest data on labour supply and fertility rates, concluding that the country has a window of opportunity with reduced demographic pressures to try to address longstanding structural challenges for the labour market.

The impact of hosting refugees on the labour market

What are the labour market effects of a massive influx of people on members of the host community? This column examines the experience of Jordan resulting from the conflict in neighbouring Syria. Evidence shows that Jordanians living in areas with high concentrations of Syrian refugees had no worse labour market outcomes than Jordanians with less exposure to the influx.

Syrian refugees in Jordan: educational enrolment and progress

School enrolment for Syrian refugees in Jordan has been disrupted due to conflict and displacement. This column reports that despite a policy of free basic and secondary education, there are substantial gaps in enrolment. While younger refugees face challenges entering school and progressing once enrolled, older refugees need support returning to education after disruptions in their schooling. Well-educated refugees will be better equipped to contribute to the economy and eventually rebuild their country.

Syrian refugees in Jordan: healthcare and food security

Ensuring the health and food security of the 1.3 million Syrians seeking refuge in Jordan is critical for protecting this vulnerable population now as well as securing their future. This column reports research showing that despite food assistance programmes, they face high rates of food insecurity. In addition, low rates of health insurance among refugees are likely to create barriers to healthcare, although refugees do ultimately access care when needed.

Syrian refugees: limited participation in Jordan’s labour force

Syrian refugees in Jordan have been able to work legally with permits since 2016, yet their labour force participation remains very low. This column discusses why relatively few work permits have been used, potentially because of perceived downsides of the current system. The low employment rates and the low take-up of work permits are worrying trends for the wellbeing of refugees.

Who are the Syrian refugees in Jordan?

The conflict in Syria has created millions of refugees, including almost 1.3 million Syrians living in Jordan. This column discusses the demographics of Syrian refugees in Jordan, who are predominantly young and living in host communities. Refugees face unique documentation challenges in accessing critical services, but recent reforms have improved access and should be expanded.

Promoting better jobs for young people in Egypt

A young person’s first job has a huge impact on the rest of their working life. Today, Egyptian youth face big challenges in securing that first position. This column explains why active labour market policies are unlikely to help with the initial transition into employment. Instead, policy-makers in Egypt should focus on improving the investment climate for small firms, and creating safe and accessible jobs for young women.

Better measures of the health of Egypt’s labour market

Policy discussions about the health of Egypt’s labour market focus almost exclusively on one indicator: the unemployment rate. This column argues that the unemployment rate is a poor indicator of the cyclical performance of the economy. What’s more, it focuses attention on the plight of a very specific group of people, who are not the most vulnerable to poor labour market conditions.

Housing policy and marriage: evidence from Egypt, Jordan and Tunisia

At a time when young people in MENA countries face an increasingly protracted and difficult transition to adulthood, how can housing policy help them to marry and form independent households? This column explains how reforms to the rental housing market in Egypt helped to reverse a trend towards later marriages.

Inequality in higher education: Egypt, Jordan and Tunisia

Attainment of higher education is strikingly unequal in Egypt and Tunisia, and a little less so in Jordan. This column reports research showing that in all three countries, family background is the primary driver of inequality. Particularly in Egypt and Tunisia, public spending on higher education is regressive, with the result that what purports to be a meritocratic and equitable system in reality perpetuates inequality.

Most read

Trust in Lebanon’s public institutions: a challenge for the new leadership

Lebanon’s new leadership confronts daunting economic challenges amid geopolitical tensions across the wider region. As this column explains, understanding what has happened over the past decade to citizens’ trust in key public institutions – parliament, the government and the armed forces – will be a crucial part of the policy response.

Qatarisation: playing the long game on workforce nationalisation

As national populations across the Gulf have grown and hydrocarbon reserves declined, most Gulf countries have sought to move to a more sustainable economic model underpinned by raising the share of citizens in the productive private sector. But, as this column explains, Qatar differs from its neighbours in several important ways that could render aggressive workforce nationalization policies counterproductive. In terms of such policies, the country should chart its own path.

Small businesses in the Great Lockdown: lessons for crisis management

Understanding big economic shocks like Covid-19 and how firms respond to them is crucial for mitigating their negative effects and accelerating the post-crisis recovery. This column reports evidence on how small and medium-sized enterprises in Tunisia’s formal business sector adapted to the pandemic and the lockdown – and draws policy lessons for when the next crisis hits.

Economic consequences of the 2003 Bam earthquake in Iran

Over the decades, Iran has faced numerous devastating natural disasters, including the deadly 2003 Bam earthquake. This column reports evidence on the unexpected economic boost in Bam County and its neighbours after the disaster – the result of a variety of factors, including national and international aid, political mobilisation and the region’s cultural significance. Using data on the intensity of night-time lights in a geographical area, the research reveals how disaster recovery may lead to a surprising economic rebound.

The impact of climate change and resource scarcity on conflict in MENA

The interrelationships between climate change, food production, economic instability and violent conflict have become increasingly relevant in recent decades, with climate-induced economic shocks intensifying social and political tensions, particularly in resource-constrained regions like MENA. This column reports new evidence on the impact of climate change on economic and food production outcomes – and how economic stability, agricultural productivity and shared water resources affect conflict. While international aid, economic growth and food security reduce the likelihood of conflict, resource scarcity and shared water basins contribute to high risks of conflict.

Qatar’s pursuit of government excellence: promises and pitfalls

As Qatar seeks to make the transition from a hydrocarbon-based economy to a diversified, knowledge-based economy, ‘government excellence’ has been identified as a key strategic objective. This column reports what government effectiveness means in terms of delivery of public services, digitalisation of services, and control of corruption – and outlines the progress made to date on these development priorities and what the country needs to do to meet its targets.

A Macroeconomic Accounting of Unemployment in Jordan:  Unemployment is mainly an issue for adults and men

Since unemployment rates in Jordan are higher among young people and women than other groups, unemployment is commonly characterised as a youth and gender issue. However, the majority of the country’s unemployed are adults and men. This suggests that unemployment is primarily a macroeconomic issue challenge for the entire labour market. The appropriate response therefore is coordinated fiscal, monetary, structural and institutional policies, while more targeted measures can still benefit specific groups.

The green energy transition: employment pathways for MENA

The potential employment impacts of green and renewable energy in the Middle East and North Africa are multifaceted and promising. As this column explains, embracing renewable energy technologies presents an opportunity for the region to diversify its economy, mitigate the possible negative impacts of digitalisation on existing jobs, reduce its carbon footprint and create significant levels of employment across a variety of sectors. Green energy is not just an environmental imperative but an economic necessity.

Global value chains, wages and skills in MENA countries

The involvement of firms in production across different countries or regions via global value chains (GVCs) can make a significant contribution to economic development, including improved labour market outcomes. This column highlights the gains from GVC participation in terms of employment quality in Egypt, Jordan and Tunisia. Given the high unemployment, sticky wages and wide skill divides that are common in the MENA region, encouraging firms to participate in GVCs is a valuable channel for raising living standards.

Tunisia’s energy transition: the key role of small businesses

Micro, small and medium-sized enterprises (MSMEs) play a critical role in Tunisia’s economy, contributing significantly to GDP and employment. As this column explains, they are also essential for advancing the country’s ambitions to make a successful transition from reliance on fossil fuels to more widespread use of renewable energy sources. A fair distribution of the transition’s benefits across all regions and communities will secure a future where MSMEs thrive as leaders in a prosperous, inclusive and sustainable Tunisia.




Linkedin