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 intro...
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| Language: | English |
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World Bank, Washington, DC
2012
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| 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 |
| Summary: | 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. |
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