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Economic Growth and Jobs Creation in Morocco: Overall and Sectors’ Analysis

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  • Ezzahidi, Elhadj
  • El Alaoui, Aicha

Abstract

Employment is linked to growth at least in the long-run. Thus, to reduce structurally unemployment it is necessary to boost growth. Thus, any strategy seeking to reduce unemployment must be devised with a good knowledge of the growth content in terms of jobs. In this paper, we use Okun’s law, arc point elasticity, and a simple econometric model to assess the intensity of the links between economic growth and (un)employment in Morocco. Okun’s law provides evidence that economic growth in Morocco is linked with a reduction of the unemployment rate. The sectors intensities to create jobs are very different and provide unsystematic results. Using an average measure of elasticity over the period 1999-2009, we find that many sectors were net losers of jobs. The overall growth-elasticity of employment is positive but low.

Suggested Citation

  • Ezzahidi, Elhadj & El Alaoui, Aicha, 2014. "Economic Growth and Jobs Creation in Morocco: Overall and Sectors’ Analysis," MPRA Paper 57841, University Library of Munich, Germany, revised 22 Apr 2014.
    • Handle: RePEc:pra:mprapa:57841
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    References listed on IDEAS

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    1. repec:ilo:ilowps:425832 is not listed on IDEAS
    2. Willi Semmler & Jeff Madrick & Tarron Khemraj, 2006. "Okun's Law and Jobless Growth," SCEPA policy note series. 2006-03, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    3. Messkoub, M., 2008. "Economic growth, employment and poverty in the Middle East and North Africa," ISS Working Papers - General Series 18733, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    4. World Bank, 2006. "Fostering Higher Growth and Employment in the Kingdom of Morocco," World Bank Publications - Books, The World Bank Group, number 7114.
    5. Messkoub, Mahmood., 2008. "Economic growth, employment and poverty in the Middle East and North Africa," ILO Working Papers 994258323402676, International Labour Organization.
    6. Agenor, Pierre-Richard & Aynaoui, Karim El, 2003. "Labor market policies and unemployment in Morocco : a quantitative analysis," Policy Research Working Paper Series 3091, The World Bank.
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    Cited by:

    1. Zakaria El Faiz & Said Tounsi, 2019. "Les Fluctuations Cycliques De La Production Et Du Chômage Au Maroc : Une Approche Sectorielle De La Loi D’Okun," Working Papers 1336, Economic Research Forum, revised 21 Aug 2019.
    2. EL HAMADI Youssef & ABDOUNI Abdeljabbar & BOUAOUZ Karima, 2017. "The Sectoral Employment Intensity Of Growth In Morocco: A Pooled Mean Group Approach," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 87-98.
    3. Chatri, Abdellatif & Maarouf, Abdelwahab & Ezzahid, Elhaj, 2015. "Productivité agricole, intégration et transformation structurelle de l’économie marocaine [Agricultural productivity, integration and structural transformation of the Moroccan economy]," MPRA Paper 71774, University Library of Munich, Germany, revised Jan 2016.

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    More about this item

    Keywords

    Growth; Jobs’ creation; Growth-elasticity of employment; Morocco;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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