Christophe Muller () (Departamento de Fundamentos del Análisis Económico, Universidad de Alicante, Campus de San Vicente, 03080 Alicante, Spain.) Christophe Nordman () (Institut de Recherche pour le Développement (IRD)-DIAL, 4 rue d'Enghien 75010, Paris.)
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From Tunisian matched worker-firm data in 1999, we study the returns to human capital in two leading manufacturing sectors. Workers in the IMMEE benefit from higher returns to human capital than their counterparts in the Textile-clothing industry. In the IMMEE firms, low wage workers experience greater returns to experience than high wage workers. The wage premium for on-the-job training (OJT) is substantial for both sectors. However, taking into account whether formal training is still ongoing at the time of the survey, our results clearly indicate that workers bear heavy costs for their training. Our analysis shows that OJT and education can be efficient channels of policies aiming at raising earnings for low wages as well as high wages workers. However, careful consideration of the industrial sector should accompany these policies since specific impact of education, experience, OJT are found in the studied sectors.
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Find related papers by JEL classification: J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
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