The Macroeconomic Effects of Labor and Product Market Reforms in Morocco

Author/Editor:

Babacar Sarr ; Mokhtar Benlamine ; Zsuzsa Munkacsi

Publication Date:

October 11, 2019

Electronic Access:

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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.

Series:

Working Paper No. 19/222

Subject:

English

Publication Date:

October 11, 2019

ISBN/ISSN:

9781513513768/1018-5941

Stock No:

WPIEA2019222

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

35

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