Assessing Interactions among Education, Social Insurance, and Labor Market Policies in a General Equilibrium Framework : An Application to Morocco

This paper develops a general equilibrium model to analyze the marginal and joint impacts that alternative macroeconomic, education, and social protection policies have on the dynamics of employment and unemployment by skill level. The model introduces a disaggregated treatment of the labor market that incorporates an informal sub-sector in every sector of the economy. The analysis explicitly models the distribution of skills in the labor force by following over time sex-age cohorts across various levels of the education system and in the labor market. And it integrates a module that projects the revenues and expenditures of the pension system. The model is applied to the case of Morocco. Simulations show that even under positive assumptions regarding economic growth, unemployment rates are likely to remain close to current levels in the next decade. The paper argues that only an integrated package of policies that affect the macro-economy, the investment climate, and the education and social protection systems would allow sustainable creation of enough "good quality" jobs.

Bibliographic Details

Main Authors:	Marouani, Mohamed A., Robalino, David A.
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	World Bank, Washington, DC 2008-07
Subjects:	ACCESS TO EDUCATION, ACCOUNTING, ACCUMULATION MODEL, ADJUSTMENT POLICIES, AGE CATEGORIES, AGGREGATE EMPLOYMENT, AGGREGATE PRODUCTIVITY, AGGREGATE UNEMPLOYMENT, AGGREGATE UNEMPLOYMENT RATE, AGRICULTURAL SECTOR, AGRICULTURE, AVERAGE GROWTH, AVERAGE PENSION, AVERAGE WAGE, AVERAGE WAGES, BARGAINING, BARGAINING POWER, BASKET OF GOODS, BENEFIT FORMULAS, BONDS, CAPITAL ACCUMULATION, COMMODITIES, COMPETITIVENESS, COMPREHENSIVE STRATEGY, CONTRIBUTION, CONTRIBUTION RATE, CONTRIBUTION RATES, COST OF LABOR, CURRENT ACCOUNT, DEMAND FOR CAPITAL, DEMOGRAPHIC COMPOSITION, DEPRECIATION, DEVELOPMENT ECONOMICS, DISABILITY, DISEQUILIBRIUM, DIVERSIFICATION, DOWNWARD RIGIDITY OF WAGES, EARLY RETIREMENT, EARNINGS, ECONOMIC ANALYSIS, ECONOMIC GROWTH, ECONOMIC SECTORS, ECONOMIC THEORY, ECONOMICS, EDUCATED INDIVIDUALS, EDUCATION LEVELS, EDUCATION SYSTEM, ELASTICITY, ELASTICITY OF SUBSTITUTION, EMPLOYERS, EMPLOYMENT, EMPLOYMENT DYNAMICS, EMPLOYMENT LEVELS, EMPLOYMENT POLICIES, EMPLOYMENT POLICY, EMPLOYMENT PROSPECTS, ENROLLMENT, EXCHANGE RATE, EXCLUSION, EXOGENOUS VARIABLES, EXPECTED WAGE, EXPENDITURE, EXPENDITURES, EXPORTS, FAMILY SUPPORT, FINANCES, FINANCIAL SECTOR, FINANCIAL SUSTAINABILITY, FISCAL DEFICIT, FISCAL SUSTAINABILITY, FIXED RATE, FORMAL EDUCATION, FUNCTIONAL FORMS, GDP, GDP PER CAPITA, GENDER, GENERAL EQUILIBRIUM, GENERAL EQUILIBRIUM MODELS, GOVERNMENT SUBSIDIES, HEALTH INSURANCE, HIGH UNEMPLOYMENT, HIGH UNEMPLOYMENT RATE, HIGH UNEMPLOYMENT RATES, HOUSEHOLD SURVEY, HOUSEHOLDS, HUMAN CAPITAL, IN-SERVICE TRAINING, INCOME, INCOME DISTRIBUTION, INCOME TAXES, INFLATION, INFORMAL SECTOR, INITIAL UNEMPLOYMENT, INNOVATION, INNOVATIONS, INTEREST PAYMENTS, INTERNATIONAL BANK, INTERNATIONAL MARKETS, INTERNATIONAL MIGRATION, INVESTMENT CLIMATE, JOBS, LABOR COSTS, LABOR DEMAND, LABOR FORCE, LABOR FORCE GROWTH, LABOR FORCE PARTICIPATION, LABOR FORCE SURVEY, LABOR FORCE SURVEYS, LABOR MARKET, LABOR MARKET ISSUES, LABOR MARKET OUTCOMES, LABOR MARKET POLICIES, LABOR MARKET POLICY, LABOR MARKET SEGMENTATION, LABOR MARKETS, LABOR MOBILITY, LABOR PRODUCTIVITY, LABOR SUPPLY, LABOUR, LACK OF ACCESS, MACROECONOMIC EFFECTS, MACROECONOMIC POLICIES, MACROECONOMIC STABILITY, MARGINAL PROPENSITY TO SAVE, MARKET SHARE, MIDDLE EAST, MINIMUM WAGE, MINIMUM WAGES, MONOPOLY, MORTALITY, NATIONAL UNEMPLOYMENT, NATIONAL UNEMPLOYMENT RATE, NEW JOBS, NORTH AFRICA, OPPORTUNITY COST, OPTIMIZATION, PENSION, PENSION FUNDS, PENSION RIGHTS, PENSION SYSTEM, PENSIONS, PENSIONS SYSTEM, PERMANENT WORKERS, POLITICAL ECONOMY, POST SECONDARY EDUCATION, PRESENT VALUE, PRIMARY EDUCATION, PRIVATE INSTITUTIONS, PROBABILITY, PRODUCTION FUNCTION, PRODUCTION FUNCTIONS, PRODUCTIVITY GROWTH, PRODUCTIVITY GROWTH RATE, PRODUCTIVITY INCREASES, PUBLIC DEBT, RATES OF RETURN, REAL GDP, REASONABLE ASSUMPTIONS, REMITTANCES, REPLACEMENT RATES, SALARIES, SAVINGS, SERVANTS, SEVERANCE PAY, SKILL TYPE, SKILLED WORKERS, SKILLS DEVELOPMENT, SOCIAL INSURANCE, SOCIAL PROTECTION, SOCIAL SECURITY, SOCIAL SECURITY CONTRIBUTIONS, STOCKS, SUBSTITUTION EFFECT, TAX RATES, TAXATION, TEMPORARY WORKERS, TOTAL FACTOR PRODUCTIVITY, TOTAL FACTOR PRODUCTIVITY GROWTH, TOTAL PRODUCTIVITY GROWTH, TOTAL SAVINGS, TOTAL UNEMPLOYMENT, TOTAL WAGE, TRADE POLICY, TRAINING POLICIES, TRAINING SYSTEM, UNEMPLOYED, UNEMPLOYMENT, UNEMPLOYMENT FIGURES, UNEMPLOYMENT INSURANCE, UNEMPLOYMENT LEVEL, UNEMPLOYMENT PROBLEM, UNEMPLOYMENT RATES, UNEMPLOYMENT REDUCTION, UNION, UNSKILLED LABOR, UNSKILLED WORKERS, URBAN AREAS, URBAN EMPLOYMENT, URBAN UNEMPLOYMENT, VALUE ADDED, VOCATIONAL TRAINING, WAGE BILL, WAGE DIFFERENTIAL, WORKER, WORKERS,
Online Access:	http://documents.worldbank.org/curated/en/2008/07/9700065/assessing-interactions-among-education-social-insurance-labor-market-policies-general-equilibrium-framework-application-morocco http://hdl.handle.net/10986/6821
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