Labor market analysis and public policy : the case of Morocco

This article uses detailed industry and household data to understand why Morocco's labor market performed poorly in 1985-95. The data indicate that structural changes and weak demand in the product market were responsible. We argue that the labor market's poor performance can be traced to, first, a shift in the employment composition of manufacturing to low-paying industries linked to the export sector, and, second, stagnant product demand, which weakened the derived demand for labor. (DSE)