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Trade Liberalisation and the Labour Market in Morocco Novella Bottini (University of Pavia, and LIUC) Michael Gasiorek (University of Sussex, and GREQAM)

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Presentation on theme: "Trade Liberalisation and the Labour Market in Morocco Novella Bottini (University of Pavia, and LIUC) Michael Gasiorek (University of Sussex, and GREQAM)"— Presentation transcript:

1 Trade Liberalisation and the Labour Market in Morocco Novella Bottini (University of Pavia, and LIUC) Michael Gasiorek (University of Sussex, and GREQAM)

2 Trade and Labour Mkt Trade and Wages (Trade Approach) Trade and Level of Employment (Development Approach) Churning

3 Morocco: Manufacturing Sector We examine how trade liberalisation with EU and MENA countries impacts on and MENA countries impacts on Moroccan workers by changing the composition of employment. by changing the composition of employment.

4 Methodology (1) Entry Entry POS Job Creation POS Job Creation Hiring Hiring Exit Exit NEG Job Destruction NEG Job Destruction Firing Firing

5 Methodology (2) SUM Turnover = POS + |NEG| SUM Turnover = POS + |NEG| NET = POS – NEG NET = POS – NEG EXCESS Churning EXCESS Churning EXC = Between + Within EXC = Between + Within

6 Turnover

7 Entry VS Hiring

8 Exit VS Firing

9 Turnover By Export Status (1)

10 Turnover By Export Status (2)

11 Turnover By Size (1)

12 Turnover By Size (2)

13 Main Results: Review Turnover: Permanent Workers < Temporary Workers; Turnover: Permanent Workers < Temporary Workers; Turnover Morocco > Turnover USA and UE; Turnover Morocco > Turnover USA and UE; Change in the trend after 1997; Change in the trend after 1997; Exporters ~ NonExporters in magnitude BUT not in time trend and composition; Exporters ~ NonExporters in magnitude BUT not in time trend and composition; Turnover: Small > Medium > Large; Turnover: Small > Medium > Large; Turnover in the main sectors is higher than the average value for the whole economy. Turnover in the main sectors is higher than the average value for the whole economy.

14 Churning among Sectors

15 Churning among ExportStatus Groups

16 Churning among Size Groups

17 Conclusion and Further Steps The analysis suggests that Turnover is higher among: Temporary Workers, Small Firms, (NO difference among Exporters and NonExporters). Trade Liberalisation increase JR mainly among Temporary Workers. Trade Liberalisation increase JR mainly among Temporary Workers. Simultaneous JC and JD within industries, size and Export Status Groups account for the vast majority of total turnover (70% on average) Simultaneous JC and JD within industries, size and Export Status Groups account for the vast majority of total turnover (70% on average) is the key issue to understand job Firm heterogeneity is the key issue to understand job reallocation in the Moroccan economy.

18 Grazie!


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