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Trade Liberalization and Local Labor Markets in Morocco

Author

Listed:
  • Roche Rodriguez, Jaime Alfonso

    (World Bank)

  • Robertson, Raymond

    (Texas A&M University)

  • Lopez-Acevedo, Gladys

    (World Bank)

  • Zárate, Daniela Ruiz

    (Bank of Mexico)

Abstract

Morocco's trade liberalization policies have promoted economic progress over the past two decades. However, effects on Morocco's local labor market outcomes vary. By combining three complementary approaches and modeling techniques, this paper estimates: (i) how trade agreements have increased trade flows, (ii) the relationship between trade exposure and mixed local labor market outcomes, and (iii) the relationship between firm employment and exports. Our results show that trade policy has increased trade flows, but this has led to mixed results for workers: increased trade has decreased informality but has failed to improve female labor force participation (FLFP). This appears to be due to a shift from female labor-intensive industries, such as apparel and textile sectors, to capital-intensive sectors that are predominantly male-intensive. Our firm level analysis confirms these results by showing that increase in employment from exports has occurred mainly in male, labor-intensive sectors.

Suggested Citation

  • Roche Rodriguez, Jaime Alfonso & Robertson, Raymond & Lopez-Acevedo, Gladys & Zárate, Daniela Ruiz, 2023. "Trade Liberalization and Local Labor Markets in Morocco," IZA Discussion Papers 16213, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16213
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    References listed on IDEAS

    as
    1. Thomas Chaney, 2018. "The Gravity Equation in International Trade: An Explanation," Journal of Political Economy, University of Chicago Press, vol. 126(1), pages 150-177.
    2. repec:hal:spmain:info:hdl:2441/3pucspchqi8kcpk743av62v2va is not listed on IDEAS
    3. Andrew B. Bernard & Stephen J. Redding & Peter K. Schott, 2011. "Multiproduct Firms and Trade Liberalization," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(3), pages 1271-1318.
    4. Berg,Claudia N. & Robertson,Raymond & Lopez-Acevedo,Gladys C., 2022. "Exports and Labor Demand : Evidence from Egyptian Firm-Level Data," Policy Research Working Paper Series 10213, The World Bank.
    5. Timothy Halliday & Daniel Lederman & Raymond Robertson, 2018. "Tracking wage inequality trends with prices and different trade models: evidence from Mexico," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(1), pages 47-73, February.
    6. Federica Alfani & Fabio Clementi & Michele Fabiani & Vasco Molini & Enzo Valentini, 2023. "Once NEET, always NEET? A synthetic panel approach to analyze the Moroccan labor market," Review of Development Economics, Wiley Blackwell, vol. 27(4), pages 2401-2437, November.
    7. Sergio Correia & Paulo Guimarães & Tom Zylkin, 2020. "Fast Poisson estimation with high-dimensional fixed effects," Stata Journal, StataCorp LP, vol. 20(1), pages 95-115, March.
    8. Thomas Chaney, 2018. "The Gravity Equation in International Trade: an Explanation," SciencePo Working papers hal-03391935, HAL.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    trade policy; trade flows; labor market outcomes; firm dynamics;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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