On-the-job learning and earnings : comparative evidence from Morocco and Senegal

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IDL-53079.pdf (193.67 KB)

Date

2012-07

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Institute for the Study of Labor (IZA), Bonn, DE

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 nonlinear 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.

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Keywords

EARNINGS FUNCTIONS, INFORMAL TRAINING, LEARNING BY WATCHING, LEARNING BY DOING, RETURNS TO TENURE, MOROCCO, SENEGAL, COMPARATIVE ANALYSIS, NON-FORMAL EDUCATION, INFORMAL LEARNING

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http://hdl.handle.net/10625/53079

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IDRC Research Results / Résultats de recherches du CRDI
2010-2019 / Années 2010-2019
Research Results (SIG) / Résultats de recherches (CPT)