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On-the-job learning and earnings in Benin, Morocco and Senegal

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Author Info
Christophe Nordman () (DIAL, IRD, Paris)
François-Charles Wolff () (LEN, Université de Nantes, CNAV, INED)

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Abstract

(english) 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 three matched worker-firm data sets from Benin, Morocco and Senegal. We rely on non-linear least squares to estimate the structural parameters of the informal learning model and account for unobserved 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 and much higher in Benin, but part of the learning-bywatching returns stems from firm heterogeneity. Informal training significantly affects the shape of returns to tenure in African 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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Paper provided by DIAL (Développement, Institutions & Analyses de Long terme) in its series Working Papers with number DT/2007/09.

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Length: 37 pages
Date of creation: Jul 2007
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Handle: RePEc:dia:wpaper:dt200709

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Related research
Keywords: Earnings functions informal training learning-by-watching learning-by-doing returns to tenure African countries

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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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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Trostel, Philip & Walker, Ian & Woolley, Paul, 2002. "Estimates of the economic return to schooling for 28 countries," Labour Economics, Elsevier, vol. 9(1), pages 1-16, February. [Downloadable!] (restricted)
  2. Mathias Kuepie & Christophe Nordman & François Roubaud, 2006. "Education and Labour Market Outcomes in Sub-Saharan West Africa," Working Papers DT/2006/16, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
  3. 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.
    Other versions:
  4. 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. [Downloadable!] (restricted)
    Other versions:
  5. Jacob Mincer, 1989. "Job Training: Costs, Returns, and Wage Profiles," NBER Working Papers 3208, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. T. Paul Schultz, 2004. "Evidence of Returns to Schooling in Africa from Household Surveys: Monitoring and Restructuring the Market for Education," Journal of African Economies, Oxford University Press, vol. 13(02), pages ii95-ii14, December.
    Other versions:
  7. 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 & Analyses de Long terme). [Downloadable!]
  8. Nordman, C., 2000. "La formation sur le tas par diffusion du savoir : estimations sur donnees marocaines, mauriciennes et tunisiennes," Papers 2000.111, Paris I - Economie Mathematique et Applications.
  9. 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. [Downloadable!] (restricted)
  10. 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. [Downloadable!] (restricted)
  11. Mincer, J., 1989. "Job Training: Costs, Returns, And Wage Profiles," Discussion Papers 1989_39, Columbia University, Department of Economics.
  12. Måns Söderbom & Francis Teal & Anthony Wambugu & Godius Kahyarara, 2006. "The Dynamics of Returns to Education in Kenyan and Tanzanian Manufacturing," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(3), pages 261-288, 06. [Downloadable!] (restricted)
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  13. 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. [Downloadable!] (restricted)
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