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Which Human Capital Matters For Rich And Poor'S Wages? Evidence From Matched Worker-Firm Data From Tunisia

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Author Info

  • Christophe Muller

    ()
    (Universidad de Alicante)

  • Christophe Nordman

    ()
    (DIAL, París)

Abstract

In this paper, we study the return to human capital variables for wages of workers observed in Tunisian matched worker-firm data in 1999. This reveals us how returns to human capital in a Less Developed Country like Tunisia may differ from the industrial countries usually studied with matched data. We develop a new method based on multivariate analysis of firm characteristics, which allows us most of the benefits obtained by introducing firm dummies in wage equations for studying the effect of education. It also provides a human capital interpretation of the effect of these dummy variables. Moreover, in the studied data, using three firm characteristics easily collectable yields results close to those obtained by using the matched structure of the data. The workers with low wages or low conditional wages experience greater returns to human capital than workers belonging to the middle of the wage distribution, while their return to schooling is significantly lower than that of high wage workers. The estimates support the hypothesis that human capital is associated with positive intra-firm externality on wages. Therefore, a given worker would be more productive and better paid in an environment strongly endowed in human capital. However, the low wage workers do not take advantage of the human capital in the firm. Conversely, the low wage workers benefit from working in the textile sector in terms of wages unlike the middle and high wage workers. Finally, the low wage workers and high wage workers benefit from an innovative environment, while the middle wage workers do not.

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Bibliographic Info

Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2005-30.

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Length: 37 pages
Date of creation: Nov 2005
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2005-30

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Keywords: Wage; returns to human capital; matched worker-firm data; quantile regressions; factor analysis; Tunisia;

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References

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Citations

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Cited by:
  1. Christophe J. Nordman & François-Charles Wolff, 2009. "Is There a Glass Ceiling in Morocco? Evidence from Matched Worker--Firm Data," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 18(4), pages 592-633, August.
  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).
  3. Nordman, Christophe Jalil & Wolff, François-Charles, 2009. "On-the-job learning and earnings: Comparative evidence from Morocco and Senegal," Economics Papers from University Paris Dauphine 123456789/5948, Paris Dauphine University.
  4. Jellal, Mohamed & Nordman, Christophe Jalil & Wolff, François-Charles, 2008. "Evidence on the glass ceiling effect in France using matched worker-firm data," Economics Papers from University Paris Dauphine 123456789/4377, Paris Dauphine University.

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