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Labor market policies and unemployment in Morocco : a quantitative analysis

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Author Info

  • Agenor, Pierre-Richard
  • Aynaoui, Karim El

Abstract

The 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 Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3091.

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Date of creation: 31 Jul 2003
Date of revision:
Handle: RePEc:wbk:wbrwps:3091

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Related research

Keywords: 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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References

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  1. A Ibourk & Sergio Perelman, 1999. "Frontières d’efficacité et processus d’appariement sur le marché du travail au Maroc," CREPP Working Papers 9904, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
  2. 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.
  3. Ramón López & Maurice Schiff, 1998. "Migration and the Skill composition of the Labor Force: The Impact of Trade Liberalization in LDCs," Canadian Journal of Economics, Canadian Economics Association, vol. 31(2), pages 318-336, May.
  4. Mathias Dewatripont & Gilles Michel, 1987. "On closure rules: homogeneity and dynamics in applied general equilibrium models," ULB Institutional Repository 2013/9563, ULB -- Universite Libre de Bruxelles.
  5. Schmidt-Hebbel, Klaus & Muller, Tobias, 1991. "Private investment under macroeconomic adjustment in Morocco," Policy Research Working Paper Series 787, The World Bank.
  6. Lofgren, Hans, 1999. "Trade reform and the poor in Morocco: a rural-urban general equilibrium analysis of reduced protection," TMD discussion papers 38, International Food Policy Research Institute (IFPRI).
  7. de Melo, Jaime & Faini, Riccardo, 1995. "Trade Liberalization, Employment and Migration. Some Simulations for Morocco," CEPR Discussion Papers 1198, C.E.P.R. Discussion Papers.
  8. Robinson, Sherman & Burfisher, Mary E. & Hinojosa-Ojeda, Raul & Thierfelder, Karen E., 1993. "Agricultural policies and migration in a U.S.-Mexico free trade area: A computable general equilibrium analysis," Journal of Policy Modeling, Elsevier, vol. 15(5-6), pages 673-701.
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Citations

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Cited by:
  1. Agenor, Pierre-Richard & Nabli, Mustapha K. & Yousef, Tarik & Jensen, Henning Tarp, 2004. "Labor market reforms, growth, and unemployment in labor-exporting countries in the Middle East and North Africa," Policy Research Working Paper Series 3328, The World Bank.
  2. repec:hal:journl:halshs-00331322 is not listed on IDEAS
  3. Stefan Boeters & Luc Savard, 2011. "The Labour Market in CGE Models," Cahiers de recherche 11-20, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  4. Lahcen ACHY & Khalid SEKKAT, 2005. "Trade Liberalization and Employment in the Moroccan Manufacturing Sector," International Trade 0512011, EconWPA.
  5. repec:hal:journl:halshs-00145424 is not listed on IDEAS
  6. P R Agénor, 2004. "The Macroeconomics of Poverty Reduction," Centre for Growth and Business Cycle Research Discussion Paper Series 43, Economics, The Univeristy of Manchester.
  7. Pierre-Richard Agénor, 2005. "Unemployment-Poverty Tradeoffs," Central Banking, Analysis, and Economic Policies Book Series, in: Jorge Restrepo & Andrea Tokman R. & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Edi (ed.), Labor Markets and Institutions, edition 1, volume 8, chapter 5, pages 115-165 Central Bank of Chile.
  8. repec:hal:wpaper:hal-00304885 is not listed on IDEAS
  9. Agenor, Pierre-Richard & Izquierdo, Alejandro & Fofack, Hippolyte, 2003. "The integrated macroeconomic model for poverty analysis : a quantitative macroeconomic framework for the analysis of poverty reduction strategies," Policy Research Working Paper Series 3092, The World Bank.
  10. Marouani, Mohamed A. & Robalino, David A., 2008. "Assessing interactions among education, social insurance, and labor market policies in a general equilibrium framework: an application to Morocco," Policy Research Working Paper Series 4681, The World Bank.
  11. Boeters, Stefan & Savard, Luc, 2013. "The Labor Market in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, Elsevier.
  12. repec:hal:wpaper:halshs-00203654 is not listed on IDEAS
  13. repec:hal:journl:halshs-00344833 is not listed on IDEAS
  14. Agenor, Pierre-Richard, 2003. "The mini-integrated macroeconomic model for poverty analysis : a framework for analyzing the unemployment and poverty effects of fiscal and labor market reforms," Policy Research Working Paper Series 3067, The World Bank.
  15. Fatma El-Hamidi, 2006. "Why Does the MENA Region Have Such High Unemployment Rates?," Working Papers 270, University of Pittsburgh, Department of Economics, revised Sep 2006.
  16. BOUDARBAT, Brahim, 2006. "Unemployment, Status In Employment And Wages In Morocco," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(1).
  17. El Bouhadi, Abdelhamid, 2006. "Contrat de travail et précarisation : une modélisation de l’information asymétrique d’une situation atypique, cas des pays pauvres et en développement
    [Employment contract and insecurity jo
    ," MPRA Paper 19859, University Library of Munich, Germany.

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