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Human Capital And Wages In Two Leading Industries Of Tunisia: Evidence From Matched Worker-Firm Data

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Author Info
Christophe Muller () (Universidad de Alicante)
Christophe Nordman () (DIAL, París)

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Abstract

From Tunisian matched worker-firm data in 1999, we study the returns to human capital for workers observed in two leading manufacturing sectors. Workers in the mechanical and electrical industries (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 labour market experience than high wage workers. The wage premium for on-the-job training 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 on-the-job training (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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Publisher Info
Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2005-07.

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Length: 32 pages
Date of creation: Feb 2005
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Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2005-07

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Related research
Keywords: wage returns to human capital matched worker-firm data quantile regressions Tunisia

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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
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