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Publications & Research :: Policy Research Working Paper

Labor Market Policies and Unemployment in Morocco : A Quantitative Analysis

ACCOUNTING AGRICULTURAL SECTOR BALANCE OF PAYMENTS BARRIERS TO ENTRY BUDGET CONSTRAINTS CAPACITY BUILDING CAPITAL MOBILITY CIVIL SERVICE COMPARATIVE ADVANTAGE COMPENSATING WAGE DIFFERENTIALS DEMOGRAPHIC STRUCTURE DEPENDENCY RATIO DEVELOPING COUNTRIES DISMISSAL ECONOMETRIC ESTIMATES ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC MANAGEMENT ELASTICITIES EMPIRICAL EVIDENCE EQUILIBRIUM FOREIGN EXCHANGE GROWTH RATE HEALTH CARE HUMAN CAPITAL INCOME INCOME COUNTRIES INCOME TAXES INDEXATION INFLATION INFORMAL SECTOR INSURANCE INTERNATIONAL MIGRATION LABOR COSTS LABOR DEMAND LABOR FORCE LABOR FORCE GROWTH LABOR MARKET LABOR MARKET POLICIES LABOR MARKET REGULATIONS LABOR MARKET SEGMENTATION LABOR MARKETS LABOR MIGRATION LABOR MOBILITY LABOR PRODUCTIVITY LABOR SUPPLY LEGAL FRAMEWORK LEGISLATION LIVING STANDARD LIVING STANDARDS LOCAL GOVERNMENTS LONG TERM LONG-TERM UNEMPLOYMENT MACROECONOMIC FRAMEWORK MANUFACTURING SECTOR MINIMUM WAGE MINIMUM WAGE REGULATION MINIMUM WAGES MUNICIPALITIES NATIONAL LEVEL OCCUPATIONS OPEN UNEMPLOYMENT PENSIONS POLICY ACTIONS POLICY RESEARCH POLITICAL PARTIES POPULATION GROWTH POVERTY REDUCTION PRIVATE GOODS PRODUCTIVITY PUBLIC ENTERPRISES PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC INSTITUTIONS PUBLIC SECTOR QUANTITATIVE ANALYSIS REAL TERMS REAL WAGES REGULATORY FRAMEWORK RESOURCE ALLOCATION RETIREMENT RURAL ECONOMY RURAL LABOR RURAL POPULATION RURAL WORKERS SAVINGS SECTOR EMPLOYMENT SERVANTS SHORT TERM SKILLED WORKERS SOCIAL SECURITY SOCIAL STATUS STRUCTURAL REFORM STRUCTURAL REFORMS TAX RATES TAX REFORM TAXATION TRADE UNIONS TRANSPORT UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT COMPENSATION UNEMPLOYMENT RATE UNSKILLED LABOR UNSKILLED WORKERS URBAN AREAS URBAN ECONOMY URBAN EMPLOYMENT URBAN POOR URBAN POPULATION URBANIZATION WAGE DIFFERENTIALS WAGES LABOR MARKET POLICY UNEMPLOYMENT RATES QUANTITATIVE ANALYSIS REDUNDANCY PAYMENTS TRADE UNIONS INTERNATIONAL LABOR ACTIVITIES LABOR MIGRATIONS MINIMUM WAGES PAYROLL TAXES UNSKILLED WORKERS LABOR MARKET POLICY WAGES
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World Bank, Washington, DC
Middle East and North Africa | Morocco
2014-05-01T21:35:09Z | 2014-05-01T21:35:09Z | 2003-07

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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