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On-the-Job Learning and Earnings: Comparative Evidence from Morocco and Senegal

Author

Listed:
  • Nordman, Christophe Jalil

    (IRD, DIAL, Paris-Dauphine)

  • Wolff, François-Charles

    (University of Nantes)

Abstract
In this paper, we consider a model of on-the-job learning where workers learn informally by watching and imitating colleagues. We estimate the rate of knowledge diffusion inside the firm using two matched worker-firm data sets from Morocco and Senegal. We rely on non-linear least squares to estimate the structural parameters of the informal learning model and account for firm heterogeneity using firm factors derived from a principal component analysis. We find that the rate of knowledge diffusion is around 7 percent in Morocco and Senegal, but part of the learning-by-watching returns stems from firm heterogeneity. Informal training significantly affects the shape of returns to tenure in these two countries. Finally, we estimate an extended model with both learning-by-watching and learning-by-doing and find significant benefits from imitating colleagues in Morocco.

Suggested Citation

  • Nordman, Christophe Jalil & Wolff, François-Charles, 2012. "On-the-Job Learning and Earnings: Comparative Evidence from Morocco and Senegal," IZA Discussion Papers 6728, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp6728
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    References listed on IDEAS

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    More about this item

    Keywords

    returns to tenure; learning-by-doing; learning-by-watching; informal training; earnings functions; Morocco; Senegal;
    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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