Labor Mobility, Economic Shocks and Jobless Growth Evidence from Panel Data in Morocco

Abstract

During the past 20 years, Morocco has implemented a wide range of macroeconomic, social and labor market reforms that have delivered in terms of GDP growth and household welfare. Yet, these positive developments are not reflected by the main labor market indicators, a phenomenon observed elsewhere in developed and developing economies alike and labeled as ‘jobless growth’. For the first time in Morocco, this paper investigates the question of labor mobility using quarterly panel data in an effort to determine whether people have moved to better sectors and jobs. Results point to significant labor mobility between labor statuses with quite distinct features across population groups. All groups experience some form of labor market mobility every quarter and women are as mobile as men. However, the transitions that women experience are very different from the transitions that men experience and women's performance is worse than men's performance in almost all aspects of labor mobility.