Are Minimum Wages and Payroll Taxes a Constraint to the Creation of Formal Jobs in Morocco?
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 secto...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/08/26741305/minimum-wages-payroll-taxes-constraint-creation-formal-jobs-morocco http://hdl.handle.net/10986/25053 |
| 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 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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