How do COVID-19 re-hiring subsidies affect unemployment duration and incomes in Morocco? An instrumental variable approach
Abstract This paper attempts to estimate the impact of a rehiring subsidy implemented as part of the COVID-19 crisis impact response in Morocco. Using administrative data from the National Social Security Fund, it develops the instrumental variable method to estimate the causal effect of this scheme...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2023-11-01
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| Series: | Journal of Economic Structures |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s40008-023-00315-w |
| _version_ | 1797453794332639232 |
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| author | Chatri Abdellatif Tahir Najia |
| author_facet | Chatri Abdellatif Tahir Najia |
| author_sort | Chatri Abdellatif |
| collection | DOAJ |
| description | Abstract This paper attempts to estimate the impact of a rehiring subsidy implemented as part of the COVID-19 crisis impact response in Morocco. Using administrative data from the National Social Security Fund, it develops the instrumental variable method to estimate the causal effect of this scheme on unemployment duration and on beneficiaries’ wages. Intended for employees who have previously received unemployment benefits, this subsidy seems to have produced contrasting effects on the beneficiaries. On one hand, it had a “disincentive” effect on their job search efforts, increasing their unemployment duration, compared to non-beneficiaries. On the other hand, it strengthened their power of bargaining and selection, leading them to choose higher paying jobs, compared to those of non-beneficiaries. |
| first_indexed | 2024-03-09T15:27:59Z |
| format | Article |
| id | doaj.art-1d0a594284a342c5961bf4642a5ded6e |
| institution | Directory Open Access Journal |
| issn | 2193-2409 |
| language | English |
| last_indexed | 2024-03-09T15:27:59Z |
| publishDate | 2023-11-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Journal of Economic Structures |
| spelling | doaj.art-1d0a594284a342c5961bf4642a5ded6e2023-11-26T12:23:55ZengSpringerOpenJournal of Economic Structures2193-24092023-11-0112111910.1186/s40008-023-00315-wHow do COVID-19 re-hiring subsidies affect unemployment duration and incomes in Morocco? An instrumental variable approachChatri Abdellatif0Tahir Najia1Laboratory of Applied Economics (LEA), Mohammed V University-RabatLaboratory of Applied Economics (LEA), Mohammed V University-RabatAbstract This paper attempts to estimate the impact of a rehiring subsidy implemented as part of the COVID-19 crisis impact response in Morocco. Using administrative data from the National Social Security Fund, it develops the instrumental variable method to estimate the causal effect of this scheme on unemployment duration and on beneficiaries’ wages. Intended for employees who have previously received unemployment benefits, this subsidy seems to have produced contrasting effects on the beneficiaries. On one hand, it had a “disincentive” effect on their job search efforts, increasing their unemployment duration, compared to non-beneficiaries. On the other hand, it strengthened their power of bargaining and selection, leading them to choose higher paying jobs, compared to those of non-beneficiaries.https://doi.org/10.1186/s40008-023-00315-wCOVID-19Impact evaluationInstrumental variableMoroccoWage subsidies |
| spellingShingle | Chatri Abdellatif Tahir Najia How do COVID-19 re-hiring subsidies affect unemployment duration and incomes in Morocco? An instrumental variable approach Journal of Economic Structures COVID-19 Impact evaluation Instrumental variable Morocco Wage subsidies |
| title | How do COVID-19 re-hiring subsidies affect unemployment duration and incomes in Morocco? An instrumental variable approach |
| title_full | How do COVID-19 re-hiring subsidies affect unemployment duration and incomes in Morocco? An instrumental variable approach |
| title_fullStr | How do COVID-19 re-hiring subsidies affect unemployment duration and incomes in Morocco? An instrumental variable approach |
| title_full_unstemmed | How do COVID-19 re-hiring subsidies affect unemployment duration and incomes in Morocco? An instrumental variable approach |
| title_short | How do COVID-19 re-hiring subsidies affect unemployment duration and incomes in Morocco? An instrumental variable approach |
| title_sort | how do covid 19 re hiring subsidies affect unemployment duration and incomes in morocco an instrumental variable approach |
| topic | COVID-19 Impact evaluation Instrumental variable Morocco Wage subsidies |
| url | https://doi.org/10.1186/s40008-023-00315-w |
| work_keys_str_mv | AT chatriabdellatif howdocovid19rehiringsubsidiesaffectunemploymentdurationandincomesinmoroccoaninstrumentalvariableapproach AT tahirnajia howdocovid19rehiringsubsidiesaffectunemploymentdurationandincomesinmoroccoaninstrumentalvariableapproach |