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Training, New Equipment and Job Creation: A Firm-level Analysis using Moroccan Data

Author

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  • Lahcen Achy

    (INSEA, Morocco and Carnegie Middle East Center, Lebanon)

  • Khalid Sekkat

    (University of Brussels, Brussels)

Abstract

Using a sample of 664 large, medium- and small-sized firms covering seven industries in Morocco, this article investigates whether the difference in their attitudes toward investment in human and physical capital explains their difference in terms of job creation. The lessons drawn from this investigation are expected to be useful for other least developed countries. The results support that such investment allows firms to create jobs, and this is robust to the inclusion of various additional explanatory variables, firm size and the industry coverage of the sample.Le papier examine l’impact de l’investissement en capital physique et humain sur la création d’emploi dans les entreprises marocaines. L’analyse économétrique est menée sur un échantillon de 664 entreprises de tailles et secteurs différents. Les enseignements tirés de cette analyse devraient être utiles à d’autres pays en développement. Les résultats montrent une forte relation de cause à effet entre l’investissement aussi bien en capital physique qu’humain et la création nette d’emploi dans les entreprises qui le réalisent. Cette conclusion résiste à différents tests de robustesse comme l’inclusion de variables explicatives additionnelles et la distinction des entreprises selon la taille et le secteur d’activité.

Suggested Citation

  • Lahcen Achy & Khalid Sekkat, 2011. "Training, New Equipment and Job Creation: A Firm-level Analysis using Moroccan Data," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 23(4), pages 615-629, September.
  • Handle: RePEc:pal:eurjdr:v:23:y:2011:i:4:p:615-629
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    References listed on IDEAS

    as
    1. Rosholm, Michael & Nielsen, Helena Skyt & Dabalen, Andrew, 2007. "Evaluation of training in African enterprises," Journal of Development Economics, Elsevier, pages 310-329.
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    5. Khalid Sekkat & Lahcen Achy, 2006. "Globalization, employment and income distribution in Developing Countries: Morocco," ULB Institutional Repository 2013/7400, ULB -- Universite Libre de Bruxelles.
    6. Milner, Chris & Wright, Peter, 1998. "Modelling Labour Market Adjustment to Trade Liberalisation in an Industrialising Economy," Economic Journal, Royal Economic Society, vol. 108(447), pages 509-528, March.
    7. Black, Sandra E & Lynch, Lisa M, 1996. "Human-Capital Investments and Productivity," American Economic Review, American Economic Association, pages 263-267.
    8. Ashoka Mody & Kamil Yilmaz, 2002. "Imported Machinery for Export Competitiveness," World Bank Economic Review, World Bank Group, vol. 16(1), pages 23-48, June.
    9. Thomas F. Rutherford & E. Elisabet Rutstrom & David Tarr, 2014. "Morocco's free trade agreement with the EU: A quantitative assessment," World Scientific Book Chapters,in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 17, pages 405-437 World Scientific Publishing Co. Pte. Ltd..
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    11. De Gregorio, Jose, 1992. "Economic growth in Latin America," Journal of Development Economics, Elsevier, pages 59-84.
    12. Orazio Attanasio & Adriana Kugler & Costas Meghir, 2008. "Training Disadvantaged Youth in Latin America: Evidence from a Randomized Trial," NBER Working Papers 13931, National Bureau of Economic Research, Inc.
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    15. Gérard Ballot & Fathi Fakhfakh & Erol Taymaz, 2006. "Who Benefits from Training and R&D, the Firm or the Workers?," British Journal of Industrial Relations, London School of Economics, vol. 44(3), pages 473-495, September.
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    Cited by:

    1. repec:wsi:medjxx:v:03:y:2011:i:02:n:s1793812011000399 is not listed on IDEAS
    2. Izak Atiyas, 2011. "Firm Level Data in The ERF Region: Research Questions, Data Requirements and Possibilities," Working Papers 589, Economic Research Forum, revised 06 Jan 2011.

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