Informal employment in Morocco: Estimation of an econometric model of informal employment based on socioeconomic determinants

Abstract

In this work, we will do an econometric analysis while exploiting a microeconomic database generated from a survey that we have carried out ourselves. The use of primary data makes it possible to collect information that corresponds exactly to the research issues, a better knowledge of the data and above all to have recent and exclusive information. We will study the individual heterogeneity of the workforce in our sample and quantify the impact of socioeconomic and professional factors on the exercise of informal employment. We seek to assess the characteristics that make the risk of having to work in the informal sector more likely. Based on the survey data that we have collected ourselves and the nature of the model used. The binary logistic regression performed allowed us to identify a number of factors determining the use of informal employment. Indeed, the age variable is negatively correlated with informal employment. On the other hand, the correlation between informal employment and the “single” modality of the “marital status” variable is positive (referring to the reference modality: widow(er)). On the other hand, the relationship between informal employment and the “Married” modality is negative. For the variable “Number of children”, it is negatively linked with informal employment. Finally, the average level and the upper level of the “diploma” variable are negatively correlated with informal employment. This analysis would make it possible to pinpoint the aspects to be improved if we want to reform the Moroccan labor market (at least for the temporary employment segment) from the extensive perspective of the traditional economy.

Keywords: Binary logistic regression, informal employment, socioeconomic determinants.

JEL Classification: E24 ; Z10

Paper type: Empirical research