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Trade Liberalisation and the Labour Market in Morocco

Trade Liberalisation and the Labour Market in Morocco. Novella Bottini (University of Pavia, and LIUC) Michael Gasiorek (University of Sussex, and GREQAM). Morocco: Manufacturing Sector. We examine how trade liberalisation with EU and MENA countries impacts on Moroccan workers

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Trade Liberalisation and the Labour Market in Morocco

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  1. Trade Liberalisation and the Labour Market in Morocco Novella Bottini (University of Pavia, and LIUC) Michael Gasiorek (University of Sussex, and GREQAM)

  2. Morocco: Manufacturing Sector We examine how trade liberalisation with EU and MENA countries impacts on Moroccan workers by changing the composition of employment.

  3. Methodology (1) Entry • POS  Job Creation Hiring Exit • NEG  Job Destruction Firing

  4. Methodology (2) • SUM  Turnover = POS + |NEG| • NET = POS – NEG • EXCESS  Churning EXC = Between + Within

  5. Turnover

  6. Entry VS Hiring

  7. Exit VS Firing

  8. Turnover By Export Status (1)

  9. Turnover By Export Status (2)

  10. Turnover By Size (1)

  11. Turnover By Size (2)

  12. Main Results: Review • Turnover: Permanent Workers < Temporary Workers; • Turnover Morocco > Turnover USA and UE; • Change in the trend after 1997; • Exporters ~ NonExporters in magnitude BUT not in time trend and composition; • Turnover: Small > Medium > Large; • Turnover in the main sectors is higher than the average value for the whole economy.

  13. Churning among Sectors

  14. Churning among ExportStatus Groups

  15. Churning among Size Groups

  16. Conclusion and Further Steps • The analysis suggests that Turnover is higher among: • Temporary Workers, • Small Firms, • (NO difference among Exporters and NonExporters). • Trade Liberalisation increase JR mainly among Temporary Workers. • Simultaneous JC and JD within industries, size and Export Status Groups account for the vast majority of total turnover (70% on average) Firm heterogeneityis the key issue to understand job reallocation in the Moroccan economy.

  17. Grazie!

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