Labor market policies and unemployment in Morocco : a quantitative analysis
AbstractThe authors study the impact of labor market policies on unemployment in Morocco. They begin by reviewing the main features of the labor market. Then they present a quantitative framework that captures many of these features-such as a large public sector, high redundancy payments, powerful trade unions, and international labor migration. The authors simulate the impact of a cut in the minimum wage and a reduction in payroll taxation. The results indicate that these policies may have a significant impact in the short term on open unskilled unemployment. But they also show that labor market reforms, to be effective in the long run, may need to be accompanied by offsetting changes in the budget to avoid crowding-out effects on private investment.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 3091.
Date of creation: 31 Jul 2003
Date of revision:
Environmental Economics&Policies; Labor Policies; Labor Markets; Economic Theory&Research; Banks&Banking Reform; Environmental Economics&Policies; Labor Markets; Banks&Banking Reform; Municipal Financial Management; Poverty Assessment;
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