By: |
Gunes Asik (Tobb Economics and Technology University, Turkey);
Ulas Karakoc (Humboldt University Berlin, Germany);
Mohamed Ali Marouani (UMR « Développement et Société », IEDES / Université Paris1-Panthéon-Sorbonne, PSL, Université Paris-Dauphine, LEDa, IRD UMR DIAL);
Michelle Marshalian (University of Paris, Dauphine (PSL) and DIAL, France) |
Abstract: |
This article explores the contribution of structural change and the skill
upgrading of the labor force to productivity in Tunisia and Turkey in the
institutional context of the post-World War II period. Our growth
decomposition shows that productivity is mainly explained by intra-industry
changes for both countries during the import substitution period. Structural
change played an important role in Turkey for a longer period of time than in
Tunisia. Based on an instrumental variable regression setting, we find
evidence that overall, the change in the share of high-educated workers had a
causal impact on productivity levels in Turkey, but no such relation was found
in Tunisia. Secondly, we show that this productivity increase has mainly been
driven by the reallocation of higher educated labor between sectors rather
than the absorption of highly educated workers within sectors. In Tunisia we
do not find evidence of links between education demand and productivity.
Moreover, the evidence from the instrumental variable regressions show that
when we exclude the government sector in Tunisia, the overall skills upgrading
is negatively associated with productivity growth, suggesting a downward
return to educated labor demand over time. |
Keywords: |
Productivity, Skills, Structural change, Tunisia, Turkey, MENA. |
JEL: |
J24 L16 N15 N17 |
Date: |
2019–05 |
URL: |
http://d.repec.org/n?u=RePEc:dia:wpaper:dt2019-06&r=all |