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

Angel-Urdinola, Diego F. ; Barry, Abdoul Gadiry ; Guennouni, Jamal

World Bank, Washington, DC

关键词: minimum wage;    payroll taxes;    informal sector;    job search;    youth employment;   

DOI  :  10.1596/1813-9450-7808
RP-ID  :  WPS7808

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

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