The hysteresis of the unemployment rate in a middle income country: the case of Morocco

Aomar Ibourk and Karim El Aynaoui

No 2409, Research papers & Policy papers on Economic Trends and Policies from Policy Center for the New South

Abstract: This paper was originally published on tandfonline.com Unemployment hysteresis, where joblessness persists even after economic improvement, reveals the lasting impact of initial downturns. We delve into this puzzle in Morocco from 1999Q1 to 2019Q3, using four methods to examine the non-accelerating inflation rate of unemployment (NAIRU) time series for unit root causes. Across all methods, we consistently find a hysteresis effect. We also explore how inflation and NAIRU interact, although results are mixed. This suggests policies focusing on reform, training, and learning could help reduce long-term joblessness. Our findings shed light on unemployment's enduring effects, even during recoveries, hinting at possible shifts in job markets. Our study contributes to global science by examining labor market hysteresis in Morocco, offering insights into policy implications for both Morocco and other developing nations. By examining how economic policies impact unemployment over time, we provide valuable guidance for policymakers grappling with similar challenges. Our research underscores the need to consider local contexts when crafting effective economic policies for developing economies.

Date: 2024-04
New Economics Papers: this item is included in nep-ara
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.policycenter.ma/publications/hysteresi ... country-case-morocco (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ocp:rpaeco:rpnn_80

Access Statistics for this paper

More papers in Research papers & Policy papers on Economic Trends and Policies from Policy Center for the New South Contact information at EDIRC.
Bibliographic data for series maintained by Policy Center for the New South's Customer service ( this e-mail address is bad, please contact ).