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This monograph provides strategies to reemploy civil-service workers in the private sector and to increase private-sector employment in the Kurdistan Region — Iraq. Prepared for and at the request of the Kurdistan Regional Government (KRG), this monograph is based on a variety of research methods and analyses. These include a review of the existing literature, analyses of survey data, analysis of Kurdistan regional and Iraqi national documents and laws, and a qualitative assessment of numerous conversations with government officials and private-sector employers.

The KRG can develop its private sector by removing obstacles to starting or expanding a business, by identifying sectors for which conditions are particularly favorable for private-sector growth and supporting them, and by outsourcing and privatizing some functions that the KRG currently performs. However, private-sector growth does not guarantee that civil-service workers will leave for private-sector employment. Civil-service workers will need the qualifications necessary for private-sector jobs and will have to expect that the benefits of private-sector employment outweigh the benefits of civil-service employment. At the same time, as the KRG devises methods for encouraging civil-service workers to leave for the private sector, a key challenge will be to ensure that the KRG is able to retain the employees it needs in order to ensure the proper functioning of government.

The research described in this monograph was sponsored by the Kurdistan Regional Government and was conducted in RAND Labor and Population, a division of the RAND Corporation.

This report is part of the RAND Corporation monograph series. RAND monographs present major research findings that address the challenges facing the public and private sectors. All RAND monographs undergo rigorous peer review to ensure high standards for research quality and objectivity.

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