IMF Working Papers

The Macroeconomic Effects of Labor and Product Market Reforms in Morocco

By Babacar Sarr, Mokhtar Benlamine, Zsuzsa Munkacsi

October 11, 2019

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Babacar Sarr, Mokhtar Benlamine, and Zsuzsa Munkacsi. The Macroeconomic Effects of Labor and Product Market Reforms in Morocco, (USA: International Monetary Fund, 2019) accessed December 26, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper studies the macroeconomic effects and sequencing of (LMRs) and product (PMRs) market reforms in Morocco. It finds that introducing LMRs and PMRs simultaneously would add about 2.5 percentage points (pp) of GDP growth and reduce unemployment by about 2.2 pp after five years. If sequencing is required, starting with PMRs would be more effective in boosting output, while starting with LMRs would reduce unemployment faster. Finally, increasing unemployment benefits would be more effective if this reform takes place after the implementation of LMRs and PMRs.

Subject: Employment, Expenditure, Labor, Labor market reforms, Labor markets, Unemployment, Unemployment benefits

Keywords: Adjustment cost, Barriers to entry, Cost, Employment, Employment effect, Employment effects of reform packaging, Employment survey, Enterprise, Enterprise survey, Firms' hiring cost, Firms’ entry costs, Global, Growth, Growth-unemployment nexus, Hiring cost, Hiring costs, Hiring probability, Informal economy, Labor market, Labor market reforms, Labor markets, Market entry, Morocco, Reducing unemployment, Small-open economy, Structural reforms, Unemployment, Unemployment benefits, Unemployment insurance, WP

Publication Details

  • Pages:

    35

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2019/222

  • Stock No:

    WPIEA2019222

  • ISBN:

    9781513513768

  • ISSN:

    1018-5941