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Are Minimum Wages and Payroll Taxes a Constraint to the Creation of Formal Jobs in Morocco?

Author: Diego F Angel-Urdinola; Abdoul Gadiry Barry; Jamal Guennouni
Publisher: Washington, D.C. : The World Bank, 2016.
Series: Policy research working papers.; World Bank e-Library.
Edition/Format:   eBook : Document : International government publication : EnglishView all editions and formats
Summary:
This paper uses a search-and-matching model to examine the effects of labor regulations that influence the cost of formal labor (notably minimum wages and payroll taxes) on labor market outcomes in Morocco. The model assumes that the informal sector is unregulated and thus not directly affected by these labor policies. However, the model takes into consideration that although labor policies apply only to the formal  Read more...
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Additional Physical Format: Print Version:
Angel-Urdinola, Diego F.
Are Minimum Wages and Payroll Taxes a Constraint to the Creation of Formal Jobs in Morocco?
Washington, D.C. : The World Bank, 2016
Material Type: Document, Government publication, International government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Diego F Angel-Urdinola; Abdoul Gadiry Barry; Jamal Guennouni
OCLC Number: 962771919
Description: 1 online resource (19 pages).
Series Title: Policy research working papers.; World Bank e-Library.
Responsibility: Diego F. Angel-Urdinola.

Abstract:

This paper uses a search-and-matching model to examine the effects of labor regulations that influence the cost of formal labor (notably minimum wages and payroll taxes) on labor market outcomes in Morocco. The model assumes that the informal sector is unregulated and thus not directly affected by these labor policies. However, the model takes into consideration that although labor policies apply only to the formal sector, they may influence the size and the composition of employment in the informal sector, as well as the size and composition of unemployment and self-employment. The results indicate that these regulations, especially minimum wage policy, contribute to higher unemployment rates and constraint formalization in Morocco, especially for youth and women.

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