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Unemployment, Status In Employment And Wages In Morocco

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  • BOUDARBAT, Brahim

Abstract

High unemployment rates among educated workers in Morocco and many other developing countries is a serious issue. The worsening unemployment problem among educated workers in Morocco started with the cuts to public sector hiring under structural adjustment policies implemented in 1983. Thus, this paper analyzes the evolution of the determinants of employment and the status in employment and wages in this country after 1983 using a cohort approach. Estimates based on microdata from the 1998 Moroccan labour force survey confirm the deterioration in employment of educated workers after 1983. The results also show that the contraction of employment opportunities has increased the probability of considering self-employment as an alternative to unemployment, except for university graduates who still prefer paid work and, consequently, risk long periods of unemployment. Results also exhibit a significant decline over time in returns to education, whereas paid employment opportunities and wages have improved for uneducated workers.

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Bibliographic Info

Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

Volume (Year): 6 (2006)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:eaa:aeinde:v:6:y:2006:i:1_12

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Related research

Keywords: Morocco; public sector; adjustment policies; unemployment; education;

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References

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  1. Upadhyay, Mukti P, 1994. "Accumulation of Human Capital in LDCs in the Presence of Unemployment," Economica, London School of Economics and Political Science, vol. 61(243), pages 355-78, August.
  2. François Combarnous, 1999. "La mise en oeuvre du modèle logistique multinomial emboîté dans l'analyse de la participation au marché du travail," Documents de travail 39, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
  3. Currie, Janet & Harrison, Ann E, 1997. "Sharing the Costs: The Impact of Trade Reform on Capital and Labor in Morocco," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages S44-71, July.
  4. Agenor, Pierre-Richard & Aynaoui, Karim El, 2003. "Labor market policies and unemployment in Morocco : a quantitative analysis," Policy Research Working Paper Series 3091, The World Bank.
  5. Angrist, Joshua D & Lavy, Victor, 1997. "The Effect of a Change in Language of Instruction on the Returns to Schooling in Morocco," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages S48-76, January.
  6. Stiglitz, Joseph E, 1974. "Alternative Theories of Wage Determination and Unemployment in LDC'S: The Labor Turnover Model," The Quarterly Journal of Economics, MIT Press, vol. 88(2), pages 194-227, May.
  7. Beaudry, Paul & DiNardo, John, 1991. "The Effect of Implicit Contracts on the Movement of Wages over the Business Cycle: Evidence from Micro Data," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 665-88, August.
  8. Rama, Martin, 1998. "How Bad Is Unemployment in Tunisia? Assessing Labor Market Efficiency in a Developing Country," World Bank Research Observer, World Bank Group, vol. 13(1), pages 59-77, February.
  9. Eaton, B Curtis & Neher, Philip A, 1975. "Unemployment, Underemployment, and Optimal Job Search," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 355-75, April.
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Cited by:
  1. Stark, Oded & Fan, C. Simon, 2011. "The Prospect of Migration, Sticky Wages, and "Educated Unemployment"," Discussion Papers 98572, University of Bonn, Center for Development Research (ZEF).
  2. Dorothée Boccanfuso & Alexandre Larouche & Mircea Trandafir, 2011. "Quality of higher education and the labor market in developing countries: Evidence from an education reform in Senegal," Cahiers de recherche 11-17, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke, revised May 2012.

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