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Intra-Firm Human Capital Externalities in Tunisia

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Author Info
Christophe Muller, Christophe J. Nordman (Université de Cergy-Pontoise, THEMA, 33, Bd. du Port, F-95000 Cergy, France,IRD, DIAL, Paris. 4 rue d'Enghien 75010, Paris.)

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Abstract

In this case-study, we use matched worker-firm Tunisian data to elicit the roles of intra-firm human capital and modern firm features in worker remunerations. We show that the estimated return to education in wage equations is not modified when replacing in the list of regressors the firm dummies, representing observed and unobserved firm heterogeneity, by the first three factors of a Principal Component Analysis of the observed firm characteristics. These factors can be interpreted as: the activity sector, the intra-firm human capital density and the modernity of the firm. These results constitute an interesting argument in favour of the presence of intra-firm human capital externalities. Moreover, the estimated education coefficient does not change when the three factors are replaced by three surrogate variables, respectively: the textile industry dummy, the intra-firm mean education, and the firm’s age.

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Publisher Info
Paper provided by THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise in its series THEMA Working Papers with number 2008-38.

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Date of creation: 2008
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Handle: RePEc:ema:worpap:2008-38

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Related research
Keywords: economic development; rate of returns; human capital; wage differentials; intra-firm knowledge externalities; Tunisia.;

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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  1. Moshe Buchinsky, 2001. "Quantile regression with sample selection: Estimating women's return to education in the U.S," Empirical Economics, Springer, vol. 26(1), pages 87-113. [Downloadable!] (restricted)
  2. Christophe Muller & Christophe Nordman, 2005. "Human Capital And Wages In Two Leading Industries Of Tunisia: Evidence From Matched Worker-Firm Data," Working Papers. Serie AD 2005-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
    Other versions:
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    Other versions:
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  14. Goux, Dominique & Maurin, Eric, 1999. "Persistence of Interindustry Wage Differentials: A Reexamination Using Matched Worker-Firm Panel Data," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 492-533, July. [Downloadable!] (restricted)
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    Other versions:
  21. Frazer, Garth, 2006. "Learning the master's trade: Apprenticeship and human capital in Ghana," Journal of Development Economics, Elsevier, vol. 81(2), pages 259-298, December. [Downloadable!] (restricted)
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