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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

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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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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
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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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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ibourk, A. & Perelman, S., 1999. "Frontieres d'efficacite et processus d'appariement sur le marche du travail au Maroc," Liege - Groupe d'Etude des Mathematiques du Management et de l'Economie 99/04, UNIVERSITE DE LIEGE, Faculte d'economie, de gestion et de sciences sociales, Groupe d'Etude des Mathematiques du Management et de l'Economie.
  2. 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. [Downloadable!] (restricted)
  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. 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. [Downloadable!] (restricted)
  5. Dewatripont, Mathias & Michel, Gilles, 1987. "On closure rules, homogeneity and dynamics in applied general equilibrium models," Journal of Development Economics, Elsevier, vol. 26(1), pages 65-76, June. [Downloadable!] (restricted)
  6. 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. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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). [Downloadable!] (restricted)
  2. Lahcen ACHY & Khalid SEKKAT, 2005. "Trade Liberalization and Employment in the Moroccan Manufacturing Sector," International Trade 0512011, EconWPA. [Downloadable!]
  3. 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. [Downloadable!]
  4. 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. [Downloadable!]
    Other versions:
  5. Agenor, Pierre-Richard, 2004. "Unemployment - poverty trade-offs," Policy Research Working Paper Series 3297, The World Bank. [Downloadable!]
  6. 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. [Downloadable!]
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