@TechReport{iza:izadps:dp6728, author={Nordman, Christophe Jalil and Wolff, François-Charles}, title={On-the-Job Learning and Earnings: Comparative Evidence from Morocco and Senegal}, year={2012}, month={Jul}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={6728}, url={https://www.iza.org/index.php/publications/dp6728}, 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 non-linear 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.}, keywords={returns to tenure;learning-by-doing;learning-by-watching;informal training;earnings functions;Morocco;Senegal}, }