Abstract EN:

Segmentation is a specific feature of urban labor markets in developing countries. In this context, numerous empirical evidences are showing the key role of the labor market in explaining poverty. Along these lines, this research strives to explore the relationship between the structure and the functioning of the urban labor market, and poverty in morocco. Indeed, the main purpose is to examine the consequences of occupational vulnerability -we suppose that labor market segmentation is rooted to it- on urban poverty. Following a theoretical review focused on the segmentation concept, a framework with a segmented labor market is presented. Based on differentials in occupational vulnerability, the aim is to detect the allocation process in the segments - individual occupational characteristics are key determinants. Using cross sectional data on urban areas from the 90-91 national living standard measurement survey, the test for the segmentation hypothesis exhibits a non random latent allocation process of the individuals in four segments. Then, in-depth analysis reveals that the incidence of poverty is closely linked to the segmentation dynamic (also to unemployment), suggesting that access to protected jobs is a key determinant of welfare conditions: indeed, 80% of the poor are located in two vulnerable segments. Besides, the results enable to specify earning patterns, and how the urban market function and interact with individual occupational choices and employers decisions. The analysis sheds light on the mechanisms creating vulnerability, and confirms the prevalence of the segmentation hypothesis in urban areas of morocco. The labor market outcomes differs by gender. Due to a better understanding of the asymmetric effects of policies and exogenous shocks on the components of the segmented market, the results contribute to ameliorate the design of policies. Finally, a set of reforms to reduce poverty throughout macroeconomic policy and structural measures is proposed.