Wages and on-the-job training in Tunisia

Abstract

International audienceTraining 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

Which Is More Effective for Job Satisfaction, Expert Knowledge or Career Status Through Training? Differences between Large Enterprises and SMEs

“…Second, there is an improvement in wages and job titles. Wages are affected positively by training (Muller and Nordman 2017). Significant wage returns for training in six European countries were reported based on the European Community Household Panel from 1995 to 2001 (Albert et al 2010).…”

“…The first refers to the expansion of the scope of training providers to include the local government. In existing research, in-house (Boissy et al 2016;Bulut and Culha 2010;Costen and Salazar 2011;Dhar 2015;Hanaysha 2016;Jaworski et al 2018;Leppel et al 2012;McNamara et al 2012;Newman et al 2011;Ocen et al 2017;Picchio and Van Ours 2013;Shen and Tang 2018;Son et al 2021;Sung and Choi 2014;Tabassi et al 2012;Úbeda-García et al 2014;Zheng and Lamond 2010) and on-the-job training (Albert et al 2010;Bjerge et al 2021;Muller and Nordman 2017;Truitt 2011) were the main areas of focus. Others included internship programs (Gault et al 2010), training vouchers (Görlitz and Tamm 2016), and university education (Benson et al 2004;Cappelli 2004;Gupta and Bennett 2014;Mihail and Kloutsiniotis 2014), although the above research lacks the perspective of local governments.…”

“…Although some studies have examined the relationship between training and wages by company size (Brunello et al 2012), the causal structure of job satisfaction is fragmentary. Typical factors for job satisfaction are expert knowledge (Costen and Salazar 2011;Görlitz and Tamm 2016;Guan and Frenkel 2018;Gupta and Bennett 2014;Ibrahim et al 2017;Newman et al 2011;Shen and Tang 2018;Truitt 2011), wages (Albert et al 2010;Bjerge et al 2021;Cherif 2021;Gault et al 2010;Görlitz and Tamm 2016;Krumbiegel et al 2018;Muller and Nordman 2017), and job position (Benson et al 2004;Costen and Salazar 2011;Mihail and Kloutsiniotis 2014;Newman et al 2011). A few studies have comprehensively highlighted the difference between large enterprises and SMEs.…”

“…The benefits of training from a corporate perspective are that it can improve loyalty to the organization (Bulut and Culha 2010;Cappelli 2004;Hanaysha 2016;Jaworski et al 2018;Ocen, Francis, and Angundaru 2017), productivity (Ibrahim, Boerhannoeddin, and Bakare 2017;McNamara et al 2012;Tabassi, Ramli, and Bakar 2012), service quality to consumers (Dhar 2015;Shen and Tang 2018;Son, Kim, and Kim 2021), employee retention rate (Costen and Salazar 2011;Newman, Thanacoody, and Hui 2011;Picchio and Van Ours 2013;Zheng and Lamond 2010), and corporate performance (Guerrazzi 2016;Sung and Choi 2014;Úbeda-García et al 2014). The benefits of training from an employee's perspective include the acquisition of expert knowledge (Görlitz and Tamm 2016;Guan and Frenkel 2018;Gupta and Bennett 2014;Truitt 2011) and improvements in wages and job titles (Albert, García-Serrano, and Hernanz 2010;Bjerge, Torm, and Trifkovic 2021;Cherif 2021;Gault, Leach, and Duey 2010;Mihail and Kloutsiniotis 2014;Muller and Nordman 2017), as well as satisfaction (Boissy et al 2016;Hanaysha and Hussain 2018;Krumbiegel, Maertens, and Wollni 2018;Leppel, Brucker, and Cochran 2012).…”