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

Author

Listed:
  • Federica Alfani
  • Vasco Molini
  • Giacomo Pallante
  • Alessandro PalmaGran

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.

Suggested Citation

  • Federica Alfani & Vasco Molini & Giacomo Pallante & Alessandro PalmaGran, 2024. "Job displacement and reallocation failure. Evidence from climate shocks in Morocco," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 51(1), pages 1-31.
    • Handle: RePEc:oup:erevae:v:51:y:2024:i:1:p:1-31.
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    File URL: http://hdl.handle.net/10.1093/erae/jbad043
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