Exports to Jobs
Morocco’s trade liberalization policies coincided with macroeconomic growth over the past two decades. The relationship between trade liberalization and individual-level labor market outcomes, however, are not well understood. By combining three complementary approaches and modeling techniques, this paper estimates (i) the relationship between trade agreements and trade flows, (ii) the relationship between trade exposure and various local labor market outcomes, and (iii) the relationship between firm employment and exports. The results show that tariffs have fallen and trade as a share of gross domestic product has increased. Morocco’s trade agreements, however, are not always associated with higher trade flows. Furthermore, trade has led to mixed results for workers. Increased trade has decreased informality but may have adversely affected female labor force participation. Trade liberalization seems to have induced a shift from female labor-intensive industries, such as apparel, to capital-intensive sectors that are predominantly male-intensive. The firm-level analysis confirms these results by showing that increases in employment from exports has occurred mainly in male, capital-intensive sectors.
Main Authors: | , , , |
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Format: | Working Paper biblioteca |
Language: | English English |
Published: |
World Bank, Washington, DC
2023-11-07
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Subjects: | GENDERED EMPLOYMENT AND EXPORTS, TRADE LIBERALIZATION POLICY, MACROECONOMIC GROWTH, LABOR MARKET OUTCOME, FIRM DYNAMICS, |
Online Access: | http://documents.worldbank.org/curated/en/099816511062330271/IDU00b69230f03adb04b7608cd80f3e08b2ce869 https://openknowledge.worldbank.org/handle/10986/40578 |
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Summary: | Morocco’s trade liberalization
policies coincided with macroeconomic growth over the past
two decades. The relationship between trade liberalization
and individual-level labor market outcomes, however, are not
well understood. By combining three complementary approaches
and modeling techniques, this paper estimates (i) the
relationship between trade agreements and trade flows, (ii)
the relationship between trade exposure and various local
labor market outcomes, and (iii) the relationship between
firm employment and exports. The results show that tariffs
have fallen and trade as a share of gross domestic product
has increased. Morocco’s trade agreements, however, are not
always associated with higher trade flows. Furthermore,
trade has led to mixed results for workers. Increased trade
has decreased informality but may have adversely affected
female labor force participation. Trade liberalization seems
to have induced a shift from female labor-intensive
industries, such as apparel, to capital-intensive sectors
that are predominantly male-intensive. The firm-level
analysis confirms these results by showing that increases in
employment from exports has occurred mainly in male,
capital-intensive sectors. |
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