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© 1999 International Bank for Reconstruction and Development / The World Bank

research-article

Labor Market Analysis and Public Policy: The Case of Morocco

Julia Lane, Guillermo Hakim, and Javier Miranda

Julia Lane is with the Urban Institute, Guillermo Hakim is with the Human Development Group of the Middle East and North Africa Region at the World Bank, and Javier Miranda is with the Department of Economics at American University. Their e-mail addresses are jlane{at}ui.urban.org, lhakim{at}worldbank.org and jmiranda{at}ces.census.gov.

This article uses detailed industry and household data to understand why Morocco's labor market performed poorly in 1985–95. The data indicate that marked structural changes and weak demand in the product market were responsible. This article makes two contributions to the literature. The first is specific: it underscores that the demand for labor is a derived demand and that the performance of the product market is an important determinant of the performance of the labor market. The second is more general: it demonstrates that this kind of microeconomic analysis, using data sets that are often available in developing countries, can inform policy design.


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