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Job Displacement and Reallocation Failure : Evidence from Climate Shocks in Morocco

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  • Alfani,Federica
  • Molini,Vasco
  • Pallante,Giacomo
  • Palma,Alessandro

Abstract

This paper investigates the effects of severe drought shocks in Morocco’s agriculture sector.Using a staggered difference-in-differences design, the estimates show that climatic shocks produced jobdisplacement of about 6.5 percentage points for workers who were exposed to severe drought events. Overall, about 45percent of these workers remained unemployed, generating a partial reallocation failure. The effects are significantonly for severe and extreme shocks; they last for at least five years, and are more pronounced among females and theleast educated workers.

Suggested Citation

  • Alfani,Federica & Molini,Vasco & Pallante,Giacomo & Palma,Alessandro, 2023. "Job Displacement and Reallocation Failure : Evidence from Climate Shocks in Morocco," Policy Research Working Paper Series 10279, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10279
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