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Trade and Job Reallocation: Evidence for Morocco

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  • Novella Bottini

    (Università Carlo Cattaneo)

  • Michael Gasiorek

Abstract

In this paper we explore the dynamics of labor market adjustment in Morocco with a particular emphasis on the role of trade liberalization. We utilize the methodology of Davis and Haltiwanger (1990) which enables us to distinguish between job creation, job destruction, overall levels of turnover, and the extent of movement within and between sectors. The results suggest that while average levels of employment growth are typically extremely low, this masks considerable movement in the labor market. The Moroccan labor market is characterized by high levels of simultaneous job creation and job destruction as well as high levels of turnover. Our decompositions show the importance of both "between" and "within" job movements, suggesting that Morocco is changing its specialization pattern. The regression analysis suggests that increasing trade openness, as well as technological change have significantly impacted on the Moroccan labor market and in particular with regards to job creation as opposed to job destruction. In turn this suggests that rigidities in the Moroccan labor market may be impeding the long-run adjustment process, but which in turn is likely to lessen the short-run adjustment costs for workers.

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  • Novella Bottini & Michael Gasiorek, 2009. "Trade and Job Reallocation: Evidence for Morocco," Working Papers 492, Economic Research Forum, revised Jun 2009.
  • Handle: RePEc:erg:wpaper:492
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    Cited by:

    1. Mohamed Ali Marouani & Rim Mouelhi, 2014. "Employment Growth, Productivity and Jobs reallocations in Tunisia: A Microdata Analysis," Working Papers DT/2014/13, DIAL (Développement, Institutions et Mondialisation).
    2. Luis Sagaon TEYSSIER & Nawal ZAAJ, 2015. "Hazard analysis for interval-censored duration of non-employment: school-to-work transition of vocational training graduates in Morocco," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(2), pages 161-178.
    3. Mohamed Ali Marouani & Rim Mouelhi, 2016. "Contribution of Structural Change to Productivity Growth: Evidence from Tunisia," Journal of African Economies, Centre for the Study of African Economies, vol. 25(1), pages 110-132.
    4. Novella Bottini & Michael Gasiorek, 2009. "Trade and Job Reallocation: Evidence for Morocco," Working Papers 492, Economic Research Forum, revised Jun 2009.
    5. Xavier Cirera & Dirk Willenbockel & Rajith W.D. Lakshman, 2014. "Evidence On The Impact Of Tariff Reductions On Employment In Developing Countries: A Systematic Review," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 449-471, July.
    6. Hassan Arouri & Adel Ben Youssef & Francesco Quatraro, 2016. "Entry, exit and net job creation in Tunisia: an exploratory analysis," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 323-337, December.
    7. Rim Ben Ayed Mouelhi & Monia Ghazali, 2021. "Structural transformation in Egypt, Morocco and Tunisia: Patterns, drivers and constraints," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(1), pages 35-61, January.

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