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On-the-job learning and earnings in Benin, Morocco and Senegal

Nordman, Christophe Jalil; Wolff, François-Charles (2007), On-the-job learning and earnings in Benin, Morocco and Senegal. https://basepub.dauphine.fr/handle/123456789/4333

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2007-09.pdf (282.3Kb)
Type
Document de travail / Working paper
Date
2007
Publisher
IRD
Series title
DIAL Document de travail
Series number
DT/2007-09
Published in
Paris
Pages
37
Metadata
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Author(s)
Nordman, Christophe Jalil cc
Wolff, François-Charles
Abstract (EN)
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 three matched worker-firm data sets from Benin, Morocco and Senegal. We rely on non-linear least squares to estimate the structural parameters of the informal learning model and account for unobserved 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 and much higher in Benin, but part of the learning-by- watching returns stems from firm heterogeneity. Informal training significantly affects the shape of returns to tenure in African 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.
Subjects / Keywords
African countries; returns to tenure; learning-by-doing; learning-by-watching; informal training; Earnings functions
JEL
O12 - Microeconomic Analyses of Economic Development
J31 - Wage Level and Structure; Wage Differentials
J24 - Human Capital; Skills; Occupational Choice; Labor Productivity

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