Unemployment, Status in Employment and Wages in Morocco

20 Pages Posted: 21 Aug 2008

See all articles by Brahim Boudarbat

Brahim Boudarbat

School of Industrial Relations, University of Montreal; IZA Institute of Labor Economics

Date Written: August 20, 2008

Abstract

High unemployment rates among educated workers in Morocco and many other developing countries is a serious issue. The worsening unemployment problem among educated workers in Morocco started with the cuts to public sector hiring under structural adjustment policies implemented in 1983. Thus, this paper analyzes the evolution of the determinants of employment and the status in employment and wages in this country after 1983 using a cohort approach. Estimates based on microdata from the 1998 Moroccan labour force survey confirm the deterioration in employment of educated workers after 1983. The results also show that the contraction of employment opportunities has increased the probability of considering self-employment as an alternative to unemployment, except for university graduates who still prefer paid work and, consequently, risk long periods of unemployment. Results also exhibit a significant decline over time in returns to education, whereas paid employment opportunities and wages have improved for uneducated workers.

Keywords: Morocco, Public sector, Adjustment policies, Unemployment, Education

JEL Classification: J24, J31, J38, J42, J45, J60

Suggested Citation

Boudarbat, Brahim, Unemployment, Status in Employment and Wages in Morocco (August 20, 2008). Applied Econometrics and International Development, Vol. 6, No. 1, 2006, Available at SSRN: https://ssrn.com/abstract=1240682

Brahim Boudarbat (Contact Author)

School of Industrial Relations, University of Montreal ( email )

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IZA Institute of Labor Economics

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