Trade Liberalization and Local Labor Markets in Morocco

Jaime Alfonso Roche Rodriguez, Raymond Robertson, Gladys Lopez-Acevedo () and Daniela Ruiz Zárate
Additional contact information
Jaime Alfonso Roche Rodriguez: World Bank
Gladys Lopez-Acevedo: World Bank
Daniela Ruiz Zárate: Bank of Mexico
Authors registered in the RePEc Author Service: Gladys Lopez-Acevedo

No 16213, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Morocco's trade liberalization policies have promoted economic progress over the past two decades. However, effects on Morocco's local labor market outcomes vary. By combining three complementary approaches and modeling techniques, this paper estimates: (i) how trade agreements have increased trade flows, (ii) the relationship between trade exposure and mixed local labor market outcomes, and (iii) the relationship between firm employment and exports. Our results show that trade policy has increased trade flows, but this has led to mixed results for workers: increased trade has decreased informality but has failed to improve female labor force participation (FLFP). This appears to be due to a shift from female labor-intensive industries, such as apparel and textile sectors, to capital-intensive sectors that are predominantly male-intensive. Our firm level analysis confirms these results by showing that increase in employment from exports has occurred mainly in male, labor-intensive sectors.

Keywords: trade policy; trade flows; labor market outcomes; firm dynamics (search for similar items in EconPapers)
JEL-codes: F13 F16 O14 O19 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2023-06
New Economics Papers: this item is included in nep-afr, nep-ara, nep-int, nep-lab and nep-ure
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