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Temporary wage subsidies and post-COVID re-employment in Morocco: a regression discontinuity approach

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  • Abdellatif Chatri
  • Najia Tahir

Abstract

This paper aims to evaluate the causal effect of a temporary wage subsidy scheme implemented in Morocco during the COVID-19 crisis. It exploits a discontinuity in the eligibility condition of this subsidy, which is the number of days reported before job loss, to identify its causal effect on beneficiaries’ unemployment duration and re-employment probability by using the regression discontinuity method based on administrative data from the National Social Security Fund (CNSS). Our findings indicate that this subsidy has reduced the duration of unemployment and improved the probability of re-employment of beneficiary employees. However, they also show that these positive effects seem to have been less pronounced among those most excluded from the labour market, namely women and young people.

Suggested Citation

  • Abdellatif Chatri & Najia Tahir, 2024. "Temporary wage subsidies and post-COVID re-employment in Morocco: a regression discontinuity approach," International Review of Applied Economics, Taylor & Francis Journals, vol. 38(3), pages 357-375, May.
  • Handle: RePEc:taf:irapec:v:38:y:2024:i:3:p:357-375
    DOI: 10.1080/02692171.2024.2345617
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