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On-the-job learning and earnings: Comparative evidence from Morocco and Senegal

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  • Nordman, Christophe Jalil
  • Wolff, François-Charles

Abstract

In this paper, we consider a model of on-the-job learning where workers learn informally by watching and imitating colleagues. We estimate the rate of knowledge diffusion inside the firm using two matched worker-firm data sets from Morocco and Senegal. We rely on non-linear least squares to estimate the structural parameters of the informal learning model and account for firm heterogeneity using firm factors derived from a principal component analysis. We find that the rate of knowledge diffusion is around 7 percent in Morocco and Senegal, but part of the learning-by-watching returns stems from firm heterogeneity. Informal training significantly affects the shape of returns to tenure in these two countries. Finally, we estimate an extended model with both learning-by-watching and learning-by-doing and find significant benefits from imitating colleagues in Morocco.

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Bibliographic Info

Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/5948.

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Date of creation: May 2009
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Handle: RePEc:dau:papers:123456789/5948

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Related research

Keywords: Senegal; Morocco; returns to tenure; learning-by-doing; learning-by-watching; informal training; Earnings functions;

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  1. T. Paul Schultz, 2003. "Evidence of Returns to Schooling in Africa from Household Surveys: Monitoring and Restructuring the Market for Education," Working Papers 875, Economic Growth Center, Yale University.
  2. Christophe Nordman & François-Charles Wolff, 2007. "Is there a glass ceiling in Morocco? Evidence from matched worker-firm data," Working Papers DT/2007/04, DIAL (Développement, Institutions et Mondialisation).
  3. Christophe Muller & Christophe Nordman, 2004. "Which Human Capital Matters for Rich and Poor’s Wages?Evidence from Matched Worker-Firm Data from Tunisia," Working Papers DT/2004/09, DIAL (Développement, Institutions et Mondialisation), revised Oct 2004.
  4. Mohamed Jellal & Christophe Nordman & Francois-Charles Wolff, 2008. "Evidence on the glass ceiling effect in France using matched worker-firm data," Applied Economics, Taylor & Francis Journals, vol. 40(24), pages 3233-3250.
  5. Battu, Harminder & Belfield, Clive R. & Sloane, Peter J., 2001. "Human Capital Spill-Overs Within the Workplace," IZA Discussion Papers 404, Institute for the Study of Labor (IZA).
  6. Jacques Mairesse & Nathalie Greenan, 1999. "Using Employee Level Data in a Firm Level Econometric Study," NBER Working Papers 7028, National Bureau of Economic Research, Inc.
  7. Harminder Battu & Clive R. Belfield & Peter J. Sloane, 2003. "Human Capital Spillovers within the Workplace: Evidence for Great Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(5), pages 575-594, December.
  8. Nordman, C., 2000. "La formation sur le tas par diffusion du savoir : estimations sur donnees marocaines, mauriciennes et tunisiennes," Papiers d'Economie Mathématique et Applications 2000.111, Université Panthéon-Sorbonne (Paris 1).
  9. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  10. Harley Frazis & Mark A. Loewenstein, 2005. "Reexamining the Returns to Training: Functional Form, Magnitude, and Interpretation," Journal of Human Resources, University of Wisconsin Press, vol. 40(2).
  11. Destré, Guillaume & Nordman, Christophe, 2002. "Les effets de la formation informelle sur les gains : une comparaison sur données appariées françaises, marocaines et tunisiennes," L'Actualité Economique, Société Canadienne de Science Economique, vol. 78(2), pages 179-206, Juin.
  12. Barron, John M & Berger, Mark C & Black, Dan A, 1997. "How Well Do We Measure Training?," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 507-28, July.
  13. Paul Collier & Marcel Fafchamps & Francis Teal & Stefan Dercon, 1998. "Rates of return on physical and human capital in Africa`s manufacturing sector," Economics Series Working Papers WPS/1998-12, University of Oxford, Department of Economics.
  14. Bigsten, Arne, et al, 2000. "Rates of Return on Physical and Human Capital in Africa's Manufacturing Sector," Economic Development and Cultural Change, University of Chicago Press, vol. 48(4), pages 801-27, July.
  15. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-29, April.
  16. Kuepie, Mathias & Nordman, Christophe J. & Roubaud, François, 2009. "Education and earnings in urban West Africa," Journal of Comparative Economics, Elsevier, vol. 37(3), pages 491-515, September.
  17. Chennouf, Soheïl & Lévy-Garboua, Louis & Montmarquette, Claude, 1997. "Les effets de l’appartenance à un groupe de travail sur les salaires individuels," L'Actualité Economique, Société Canadienne de Science Economique, vol. 73(1), pages 207-232, mars-juin.
  18. Richard K. Johanson & Arvil V. Adams, 2004. "Skills Development in Sub-Saharan Africa," World Bank Publications, The World Bank, number 15028, October.
  19. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
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Cited by:
  1. Nordman, Christophe Jalil & Pasquier-Doumer, Laure, 2012. "Vocational Education, On-the-Job Training and Labour Market Integration of Young Workers in Urban West Africa," Economics Papers from University Paris Dauphine 123456789/10596, Paris Dauphine University.

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