Does the growth of industrial employment depend on its local context? The example of Tunisia

Based on previous work on industrial development models in developed countries, this study examines the local development of industrial employment in Tunisia during three distinct time periods (2003–19, 2003–10 and 2010–19). The analysis reveals that high levels of industrial specialization and larger firm sizes impede employment growth, while metropolitan areas with a population exceeding 70, 000 experience significant increases in employment. Natural amenities, such as a favorable climate and proximity to the coast, have a positive impact on job creation. The main determinants of local employment growth include regional demand, the level of human capital qualification, and accessibility to airports. Investment incentive policies effectively stimulate job creation in designated development zones. These findings provide new evidences regarding the factors that contribute to regional employment disparities in Tunisia and suggest the need for targeted policy interventions.