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Exports to Improve Women's Economic Opportunities in Morocco

Author

Listed:
  • Roche Rodriguez, Jaime Alfonso

    (World Bank)

  • Robertson, Raymond

    (Texas A&M University)

  • Lopez-Acevedo, Gladys

    (World Bank)

  • Zárate, Daniela Ruiz

    (Bank of Mexico)

Abstract

Morocco's trade liberalization policies coincided with macroeconomic growth over the past two decades. The relationship between trade liberalization and individual-level labor-market outcomes, however, are not well understood. By combining three complementary approaches and modeling techniques, this paper estimates: (i) the relationship between trade agreements and trade flows, (ii) the relationship between trade exposure and various local labor market outcomes, and (iii) the relationship between firm employment and exports. Our results show that tariffs have fallen and trade, as a share of GDP has increased. Morocco's trade agreements, however, are not always associated with higher trade flows. Furthermore, trade has led to mixed results for workers. Increased trade has decreased informality but may have adversely affected female labor force participation (FLFP). Trade liberalization seems to have induced a shift from female labor-intensive industries, such as apparel, to capital-intensive sectors that are predominantly male-intensive. Our firm level analysis confirms these results by showing that increasing in employment from exports has occurred mainly in male, capital-intensive sectors. Labor-abundant countries might want to provide incentives to labor-intensive industries rather than only supporting capital-intensive ones - especially in industries where women typically perform the labor-intensive jobs. It is important to note that we focus mainly on the labor demand side. Policies related to the supply side should also be weighed to create incentives for females to join the labor force, such as policies addressing social norms, regulation, and barriers to job mobility.

Suggested Citation

  • Roche Rodriguez, Jaime Alfonso & Robertson, Raymond & Lopez-Acevedo, Gladys & Zárate, Daniela Ruiz, 2023. "Exports to Improve Women's Economic Opportunities in Morocco," IZA Discussion Papers 16546, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16546
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    References listed on IDEAS

    as
    1. Kirill Borusyak & Peter Hull & Xavier Jaravel, 2022. "Quasi-Experimental Shift-Share Research Designs [Sampling-based vs. Design-based Uncertainty in Regression Analysis]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(1), pages 181-213.
    2. Thomas Chaney, 2018. "The Gravity Equation in International Trade: An Explanation," Journal of Political Economy, University of Chicago Press, vol. 126(1), pages 150-177.
    3. repec:hal:spmain:info:hdl:2441/3pucspchqi8kcpk743av62v2va is not listed on IDEAS
    4. Islam, Asif Mohammed & Moosa, Dalal Hasan Sharif Sayed & Saliola, Federica, 2022. "Jobs Undone: Reshaping the Role of Governments toward Markets and Workers in the Middle East and North Africa," Jobs Group Papers, Notes, and Guides 33863304, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    gender; trade policy; trade flows; labor market outcomes; firm dynamics;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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