The Macroeconomic Effects of Labor and Product Market Reforms in Morocco
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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.
Series:
Working Paper No. 2019/222
Subject:
Employment Expenditure Labor Labor market reforms Labor markets Unemployment Unemployment benefits
English
Publication Date:
October 11, 2019
ISBN/ISSN:
9781513513768/1018-5941
Stock No:
WPIEA2019222
Pages:
35
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