Agenor, Pierre-RichardEl Aynaoui, Karim2014-05-012014-05-012003-07https://hdl.handle.net/10986/18141The 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.en-USCC BY 3.0 IGOACCOUNTINGAGRICULTURAL SECTORBALANCE OF PAYMENTSBARRIERS TO ENTRYBUDGET CONSTRAINTSCAPACITY BUILDINGCAPITAL MOBILITYCIVIL SERVICECOMPARATIVE ADVANTAGECOMPENSATING WAGE DIFFERENTIALSDEMOGRAPHIC STRUCTUREDEPENDENCY RATIODEVELOPING COUNTRIESDISMISSALECONOMETRIC ESTIMATESECONOMIC ACTIVITYECONOMIC CONDITIONSECONOMIC GROWTHECONOMIC MANAGEMENTELASTICITIESEMPIRICAL EVIDENCEEQUILIBRIUMFOREIGN EXCHANGEGROWTH RATEHEALTH CAREHUMAN CAPITALINCOMEINCOME COUNTRIESINCOME TAXESINDEXATIONINFLATIONINFORMAL SECTORINSURANCEINTERNATIONAL MIGRATIONLABOR COSTSLABOR DEMANDLABOR FORCELABOR FORCE GROWTHLABOR MARKETLABOR MARKET POLICIESLABOR MARKET REGULATIONSLABOR MARKET SEGMENTATIONLABOR MARKETSLABOR MIGRATIONLABOR MOBILITYLABOR PRODUCTIVITYLABOR SUPPLYLEGAL FRAMEWORKLEGISLATIONLIVING STANDARDLIVING STANDARDSLOCAL GOVERNMENTSLONG TERMLONG-TERM UNEMPLOYMENTMACROECONOMIC FRAMEWORKMANUFACTURING SECTORMINIMUM WAGEMINIMUM WAGE REGULATIONMINIMUM WAGESMUNICIPALITIESNATIONAL LEVELOCCUPATIONSOPEN UNEMPLOYMENTPENSIONSPOLICY ACTIONSPOLICY RESEARCHPOLITICAL PARTIESPOPULATION GROWTHPOVERTY REDUCTIONPRIVATE GOODSPRODUCTIVITYPUBLIC ENTERPRISESPUBLIC EXPENDITUREPUBLIC GOODSPUBLIC INSTITUTIONSPUBLIC SECTORQUANTITATIVE ANALYSISREAL TERMSREAL WAGESREGULATORY FRAMEWORKRESOURCE ALLOCATIONRETIREMENTRURAL ECONOMYRURAL LABORRURAL POPULATIONRURAL WORKERSSAVINGSSECTOR EMPLOYMENTSERVANTSSHORT TERMSKILLED WORKERSSOCIAL SECURITYSOCIAL STATUSSTRUCTURAL REFORMSTRUCTURAL REFORMSTAX RATESTAX REFORMTAXATIONTRADE UNIONSTRANSPORTUNEMPLOYEDUNEMPLOYMENTUNEMPLOYMENT COMPENSATIONUNEMPLOYMENT RATEUNSKILLED LABORUNSKILLED WORKERSURBAN AREASURBAN ECONOMYURBAN EMPLOYMENTURBAN POORURBAN POPULATIONURBANIZATIONWAGE DIFFERENTIALSWAGES LABOR MARKET POLICYUNEMPLOYMENT RATESQUANTITATIVE ANALYSISREDUNDANCY PAYMENTSTRADE UNIONSINTERNATIONAL LABOR ACTIVITIESLABOR MIGRATIONSMINIMUM WAGESPAYROLL TAXESUNSKILLED WORKERSLABOR MARKET POLICYWAGES10.1596/1813-9450-3091