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Wages and On-the-Job Training in Tunisia

  • Christophe Muller


    (AMSE - Aix-Marseille School of Economics - EHESS - École des hautes études en sciences sociales - Centre national de la recherche scientifique (CNRS) - Ecole Centrale Marseille (ECM) - AMU - Aix-Marseille Université)

  • Christophe J. Nordman


    (DIAL - Développement, institutions et analyses de long terme - Institut de recherche pour le développement [IRD], IZA - Institute for the Study of Labor)

Training costs may hamper intra-firm human capital accumulation. As a consequence, firms may be tempted to having workers paying for their -the-job training (OJT). In this paper, we analyse the links of OJT and worker remuneration in the area of Tunis, using a case study data of eight firms. We find that the duration of former OJT negatively influences starting wages, while there is no anticipated effect of future training on wages at the firm entry. In contrast, current wages are positively affected by former OJT but negatively affected by ongoing OJT. These results provide very rare empirical support in LDCs for classical human capital theories and cost sharing theories applied to OJT.

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Paper provided by HAL in its series Working Papers with number halshs-00793383.

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Date of creation: May 2015
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Handle: RePEc:hal:wpaper:halshs-00793383
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