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The Impact of Institutional Uncertainty on Employment Generation Perspectives of Firms in Jordan


October 2018. Written by Serena Sandri, Nooh Alshyab.



Drawing on different traditions of institutional analysis, the present study aims at eliciting the perception of institutional uncertainty amongst private sector decision makers and to assess its effect on job creation perspectives.

ABSTRACT:

Drawing on different traditions of institutional analysis, the present study aims at eliciting the perception of institutional uncertainty amongst private sector decision makers and to assess its effect on job creation perspectives. This is done by developing an original subjective indicator to measure the uncertainty induced by institutions and by analysing the results of a survey administered amongst a representative sample of 319 entrepreneurs, business owners, and top managers in Jordan. The estimation of binary logit models signals that our measure of institutional uncertainty is a good predictor for the perspectives of job creation and firm growth and that, in particular, uncertainty related to the judiciary, political instability, and wasta has a significant effect on discouraging job creation expectations.






Thursday, October 4th 2018
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