Abstract
Training 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.
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