On-the-job learning and earnings in Benin, Morocco and Senegal
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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Bibliographic InfoPaper provided by DIAL (Développement, Institutions et Mondialisation) in its series Working Papers with number DT/2007/09.
Length: 37 pages
Date of creation: Jul 2007
Date of revision:
Earnings functions; informal training; learning-by-watching; learning-by-doing; returns to tenure; African countries;
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
This paper has been announced in the following NEP Reports:
- NEP-AFR-2007-09-16 (Africa)
- NEP-ALL-2007-09-16 (All new papers)
- NEP-HRM-2007-09-16 (Human Capital & Human Resource Management)
- NEP-LAB-2007-09-16 (Labour Economics)
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