Job displacement and reallocation failure. Evidence from climate shocks in Morocco

Federica Alfani, Vasco Molini (), Giacomo Pallante and Alessandro PalmaGran

European Review of Agricultural Economics, 2024, vol. 51, issue 1, 1-31

Abstract: We investigate the impact of severe drought shocks in Morocco’s agricultural sector. Using a staggered difference-in-differences design, we estimate that climatic shocks resulted in a job displacement of approximately 6.5 percentage points for workers exposed to severe drought events. Additionally, we observe that, overall, approximately 39 per cent of these workers remained unemployed, leading to a partial reallocation failure. These effects are significant only for severe and extreme shocks, persist for at least 5 years, and are more pronounced among informal and female workers.

Keywords: drought; agriculture; job displacement; SPEI; unemployment (search for similar items in EconPapers)
Date: 2024
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Working Paper: Job Displacement and Reallocation Failure: Evidence from Climate Shocks in Morocco (2023)
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