The impact of training on productivity and wages in Tunisia
International Journal of Manpower
ISSN: 0143-7720
Article publication date: 2 September 2021
Issue publication date: 25 July 2022
Abstract
Purpose
The purpose of this paper is to investigate the impact of training on labor productivity and wages in order to examine how the benefits from training are shared between employers and employees.
Design/methodology/approach
This study analyzes an industry panel covering all sectors of the Tunisian economy for the period 2000–2014. The panel structure of the data allows controlling for the endogeneity of training by using different panel data techniques.
Findings
Results show that both employers and workers benefit from training since it has a positive and significant effect on productivity and wages. However, the effect of training on productivity is substantially higher than on wages, suggesting that employers obtain the largest part of the returns to training. This result is consistent with theories that explain firm-sponsored training by a compressed wage structure in imperfect labor markets.
Originality/value
This study, particularly showcasing the labor market in Tunisia, is one of the first to provide estimates for a developing country to assess the effects of training for both employer and employee. It is also among the few empirical works that analyzed the impact of training on labor productivity and wages simultaneously.
Keywords
Acknowledgements
The author would like to express his special thanks to Professor Rafik Baccouche for his generous and invaluable support and guidance throughout the realization of this research.
Declarations of interest: None.
This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors.
Citation
Ben Jemaa Cherif, N. (2022), "The impact of training on productivity and wages in Tunisia", International Journal of Manpower, Vol. 43 No. 4, pp. 950-961. https://doi.org/10.1108/IJM-12-2019-0527
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited