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This paper aims to assess the impact of the Moroccan wage subsidy program "Idmaj". It applies the propensity score matching method to the data from a survey conducted by the Ministry of Labour on a sample of eligible individuals. Our results suggest that wage subsidies in Morocco have a positive but marginally significant effect on reducing unemployment and improving employment and a significant negative impact on wages. It also highlights some heterogeneous effects of the program, particularly on women. Finally, it appears that the program did not serve as a stepping stone to higher-paying, high-quality work and, in contrast, it had a stigmatizing effect on beneficiaries.
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Chatri et al. (2021) studied this question.
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