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Which Human Capital Matters for Rich and Poor’s Wages?Evidence from Matched Worker-Firm Data from Tunisia

Author

Listed:
  • Christophe Muller

    (Departamento de Fundamentos del Análisis Económico Universidad de Alicante, Campus de San Vicente)

  • Christophe Nordman

    (DIAL, IRD, Paris)

Abstract

(français) Nous analysons les rendements du capital humain à partir de données liées employeurs-employés collectées en Tunisie en 1999 et indiquons comment ces rendements diffèrent de ceux généralement obtenus dans les pays industrialisés avec ce type de données. Nous développons une nouvelle méthode fondée sur une analyse factorielle des caractéristiques d'entreprise qui rapproche nos résultats, en ce qui concerne le rendement de l’éducation, de ceux que l'on obtient en utilisant des équations de salaire à effets fixes d'entreprise. Notre technique d'estimation fournit une interprétation de ces effets en distinguant l'impact sur les salaires du capital humain propres aux établissements. En outre, l'inclusion dans l'analyse de trois caractéristiques d'entreprise facilement mobilisables procure des résultats très proches de ceux obtenus lorsque toute l'information disponible sur la structure d'appariement des données est utilisée. L'introduction de l'approche factorielle confirme l'idée selon laquelle le capital humain peut constituer une source positive d'externalité intra entreprise. Un travailleur d'une qualification donnée serait plus productif et donc mieux rémunéré dans un environnement fortement doté en capital humain. Toutefois, les travailleurs pauvres ne semblent pas pouvoir bénéficier des qualifications de leur entreprise. En revanche, les pauvres profitent d'un emploi dans le secteur des textiles en termes de rémunération, contrairement aux travailleurs à salaires médians et élevés. _________________________________ (english) We study the returns to human capital for workers observed in Tunisian matched worker-firm data in 1999. This tells us how these returns differ from those obtained in industrialised countries 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 fixed effects in wage equations for studying the effect of education. It also provides a human capital interpretation of these firm effects. Moreover, using three firm characteristics easily collectable yields results close to those obtained by using the matched structure of the data. Wage regressions including the computed factors confirm 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 poorest workers do not take advantage of human capital in the firm. Conversely, the poor benefit from working in the textile sector in terms of wages unlike the middle and high wage workers.

Suggested Citation

  • Christophe Muller & Christophe Nordman, 2004. "Which Human Capital Matters for Rich and Poor’s Wages?Evidence from Matched Worker-Firm Data from Tunisia," Working Papers DT/2004/09, DIAL (Développement, Institutions et Mondialisation), revised Oct 2004.
  • Handle: RePEc:dia:wpaper:dt200409
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    Cited by:

    1. Christophe J. NORDMAN & François-Charles WOLFF, 2012. "On-The-Job Learning And Earnings: Comparative Evidence From Morocco And Senegal," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 35, pages 151-176.
    2. 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, vol. 18(4), pages 592-633, August.
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    4. Christophe Muller & Christophe J. Nordman, 2017. "Wages and on-the-job training in Tunisia," Middle East Development Journal, Taylor & Francis Journals, vol. 9(2), pages 294-318, July.
    5. Christophe Muller & Christophe J. Nordman, 2008. "Intra-Firm Human Capital Externalities in Tunisia," THEMA Working Papers 2008-38, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    6. Christophe Muller & Christophe Nordman, 2005. "Human capital and wages in two leading industries in Tunisia: evidence from matched worker-firm data," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 48(1-2), pages 183-208.
    7. repec:dau:papers:123456789/5948 is not listed on IDEAS
    8. Mohamed Jellal & Christophe Nordman & Francois-Charles Wolff, 2008. "Evidence on the glass ceiling effect in France using matched worker-firm data," Applied Economics, Taylor & Francis Journals, vol. 40(24), pages 3233-3250.
    9. repec:dau:papers:123456789/4377 is not listed on IDEAS
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    More about this item

    Keywords

    wage; returns to human capital; matched worker-firm data; quantile regressions; factor analysis; Tunisia;
    All these keywords.

    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, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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