Gender Disparities in Informal Employment in Morocco
Striving for formalization of the Moroccan economy reveals significant gender gaps in informal employment. Women are disproportionately affected, with lower employment rates and lack of job security compared to men. Informal sector prevalence remains high, impacting access to healthcare and pension coverage. Contractual disparities further highlight the challenges faced by youth and women in the labor market.
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STRIVING FOR FORMALIZATION: Cherkaoui Mouna Taoufiq Benkkarach 27thJune 2019 GENDER AND YOUTH ASPECTS OF INFORMAL EMPLOYMENT IN MOROCCO
THE MOROCCAN ECONOMY Important Reforms Structural Transformations Insufficient Job Creation
STRIKING DIFFERENCES BETWEEN MEN AND WOMEN EMPLOYMENT Overall employment rate = 42 percent in 2016 But wide differences in employment rates: Between rural 53.4 percent and urban 34.9 percent Between men 64.5 percent and women 21 percent Between men 58.5 percent and women 12.9 in urban areas Between men 74 percent and women in rural areas 34 percent And wide differences in employment trajectories of men and women
HIGH PREVALENCE OF INFORMAL EMPLOYMENT National Survey of the Informal Sector (NSIS) Contribution of informal sector employment to overall non-agricultural employment = 36.2 percent. Structure of permanent employment in the non agricultural informal sector by professional status self employed 80 percent; wage earners 15 percent and non wage earners 5 percent. Share of women's in informal non agricultural employment in 2014 =10.5 percent Different shares of women in informal non agricultural employment depending on sector of activity: industry20.1 percent; services13.7 percent; construction less than1 percent and resale sector less than 7 percent.
HIGH PREVALENCE OF INFORMAL EMPLOYMENT Informal employment in the National Labor Force Survey (NLFS) Job related medical coverage Employees aged 15 and over that have job-related health coverage= 22.5% (34.5% of employees in urban areas and 7.8% of employees in rural areas).
HIGH PREVALENCE OF INFORMAL EMPLOYMENT Pension system: Employed persons aged 15 and over covered by a pension system= 20.9% Almost same for both men and women. But varies: By urban (33%) rural (6%) By level of education, non degree (10.6%) and higher level (75.2%) By professional status, self-employed (2.4%), employees (39.5%), employer (22.2%) By sector of activity, Industry and crafts (37%), services (33%), Housing (9%), agriculture (4.5%).
HIGH PREVALENCE OF INFORMAL EMPLOYMENT Contractual employment: More than 6 out of 10 wage earners do not have a contract Almost 90% of young workers do not have a contract Wage Employment Unpaid Work=16% Rural areas=33 % Urban areas=3% Employed women working without pay in 2018=40% Employed men working without pay in 2018=10% Employed rural women working without pay in 2018=70%
CONDITIONS OF YOUTH INFORMAL EMPLOYMENT The 2016 Moroccan SAHWA Youth Survey was carried out amongst 1854 young people in Morocco aged 15 to 29 of which 1207 are men and 647 are women. The share of young female workers informally employed is higher than that of young male workers. The informally employed represent a higher percentage in rural areas. The young female workers are almost all informally employed in rural areas. The formal employment increases with age. Formal employment also rises with education but only higher education protects from informality
CONDITIONS OF YOUTH INFORMAL EMPLOYMENT The type of education received matters in terms of access to job formality. The parental job status is a good predictor of formal versus informal employment among youth. The average wage of the informally and formally employed youth differ. The level of awareness of active employment program is higher for the formally employed. The formally employed youth are for most satisfied with their job. The differences in values are stronger when different work status are considered than when gender is taken into account.
WORK FORMALIZATION POLICIES, PROGRAMS AND LAWS IN MOROCCO Many programs aim at encouraging wage formal employment. The IDMAJ: exemptions from the employer and employees contributions and professional training tax. The TAHFIZ : exemption of social security contributions and from income tax for 24 month. The TAEHIL : qualifying training for reconversion, contractualized training for employment and the support system for emerging sectors. MOUKAWALATI : self-employment through the creation of microenterprises IKRAM 1 and IKRAM 2, MINAJLIKI and WADIYATI: programs geared toward women Other programs: ISTIAAB integration of informal activities into the formal economy; MOUBADARA reinforce employment in the social economy and finally, TAATIR requalify those that have been unemployed for a long period of time.
WORK FORMALIZATION POLICIES, PROGRAMS AND LAWS IN MOROCCO Domestic Workers Law: The contract must specify: the contract term, the nature of the work, the trial period, the number of weekly hours of work, the salary, the weekly rest and the yearly vacation. The domestic employment law formalization impact is delayed by: non-publication of the decree concerning the conditions of application of social security, reluctance of domestic workers to sign contracts, resistance of the domestic employee s intermediaries through disinformation and the reluctance of domestic employees to renounce to the RAMED This is compounded by the fact that the domestic employees are a heterogeneous population.
WORK FORMALIZATION POLICIES, PROGRAMS AND LAWS IN MOROCCO The Self Entrepreneur Law The creation of a legal and fiscal statute dedicated to self-entrepreneurs. The law gives a number of advantages to self-entrepreneurs: Exemption from the obligation to register in the commercial register and from the requirement to keep an extensive accounting, Possibility of domiciling their business in their residence or in premises operated jointly by several companies, Social coverage from the date of registration to the National Register of the Auto- entrepreneur (NRAE), A number of fiscal advantages and Procedures that are significantly simplified 2/3 are men and 1/3 are women
CONCLUSION Even the combination of a reasonable level of growth and the implementation of well intended policies, programs and laws might not be sufficient to raise the extent of formality among workers, especially youth and women
