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Assessing interactions among education, social insurance, and labor market policies in a general equilibrium framework: an application to Morocco

  • Marouani, Mohamed A.
  • Robalino, David A.

This paper developsa general equilibrium model to analyze the marginal and joint impacts that alternative macroeconomic, education, and social protection policies have on the dynamics of employment and unemployment by skill level. The model introduces a disaggregated treatment of the labor market that incorporates an informal sub-sector in every sector of the economy. The analysis explicitly models the distribution of skills in the labor force by following over time sex-age cohorts across various levels of the education system and in the labor market. And it integrates a module that projects the revenues and expenditures of the pension system. The model is applied to the case of Morocco. Simulations show that even under positive assumptions regarding economic growth, unemployment rates are likely to remain close to current levels in the next decade. The paper argues that only an integrated package of policies that affect the macro-economy, the investment climate, and the education and social protection systems would allow sustainable creation of enough"good quality"jobs.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4681.

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Date of creation: 01 Jul 2008
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Handle: RePEc:wbk:wbrwps:4681
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  1. Fields, Gary S., 2005. "A welfare economic analysis of labor market policies in the Harris-Todaro model," Journal of Development Economics, Elsevier, vol. 76(1), pages 127-146, February.
  2. ABDELKHALEK, Touhami & DUFOUR, Jean-Marie, 1998. "Confidence Regions for Calibrated Parameters in Computable General Equilibrium Models," Cahiers de recherche 9810, Universite de Montreal, Departement de sciences economiques.
  3. repec:cup:cbooks:9780521873161 is not listed on IDEAS
  4. Fields, Gary S., 2007. "Labor market policy in developing countries : a selective review of the literature and needs for the future," Policy Research Working Paper Series 4362, The World Bank.
  5. Fallon, P R & Layard, P R G, 1975. "Capital-Skill Complementarity, Income Distribution, and Output Accounting," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 279-301, April.
  6. Agenor, Pierre-Richard & Aynaoui, Karim El, 2003. "Labor market policies and unemployment in Morocco : a quantitative analysis," Policy Research Working Paper Series 3091, The World Bank.
  7. Bodor, Andras & Robalino, David & Rutkowski, Michal, 2007. "Assessing the distortions of mandatory pensions on labor supply decisions and human capital accumulation : how to bridge the gap between economic theory and policy analysis," Policy Research Working Paper Series 4355, The World Bank.
  8. Bodor, Andras & Robalino, David & Rutkowski, Michal, 2008. "How Mandatory Pensions Affect Labor Supply Decisions and Human Capital Accumulation? Options to Bridge the Gap between Economic Theory and Policy Analysis," MPRA Paper 12046, University Library of Munich, Germany.
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