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Wages and On-the-Job Training in Tunisia

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  • Christophe Muller

    () (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université - EHESS - École des hautes études en sciences sociales)

  • Christophe J. Nordman

    () (DIAL - Développement, institutions et analyses de long terme, IZA - Institute for the Study of Labor)

Abstract

Training costs may hamper intra-firm human capital accumulation. As a consequence, firms may be tempted to have workers paying for their on-the-job training (OJT). In this paper, we analyse the links of OJT and worker remuneration in the suburb of Tunis, using case-study data for 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.

Suggested Citation

  • Christophe Muller & Christophe J. Nordman, 2017. "Wages and On-the-Job Training in Tunisia," Working Papers halshs-00793383, HAL.
  • Handle: RePEc:hal:wpaper:halshs-00793383
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00793383v3
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    References listed on IDEAS

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    Keywords

    on-the-job training; wage; Tunisia;

    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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