Article 2017

Wages and on-the-job training in Tunisia

Middle East Development Journal
Journal · Vol. 9 · Issue 2 · pp. 294-318
Abstract

Training costs may hamper intra-firm human capital accumulation. As a consequence, firms may be tempted to have workers pay 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 Less Developed Countries (LDCs) for classical human capital theories and cost sharing theories applied to OJT. © 2017, © 2017 Economic Research Forum.

Keywords

Author Keywords

Wages On-the-job training Tunisia

Index Keywords

Author Affiliations
Aix Marseille Université, Marseille, Provence-Alpes-Cote d'Azur, France
IRD Institut de Recherche pour le Developpement, Marseille, France
Funding & Acknowledgements
Agence Nationale de la Recherche, ANR
This work has been carried out thanks to the support of the A*MIDEX project TMENA (No. ANR-11-IDEX-0001-02) funded by the ‘Investissements d'Avenir’ French Government program, managed by the French National Research Agency (ANR).
References 10 References
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