Training, New Equipment and Job Creation: A Firm-level Analysis using Moroccan Data

Lahcen Achy () and Khalid Sekkat

The European Journal of Development Research, 2011, vol. 23, issue 4, 615-629

Abstract: Using a sample of 664 large, medium- and small-sized firms covering seven industries in Morocco, this article investigates whether the difference in their attitudes toward investment in human and physical capital explains their difference in terms of job creation. The lessons drawn from this investigation are expected to be useful for other least developed countries. The results support that such investment allows firms to create jobs, and this is robust to the inclusion of various additional explanatory variables, firm size and the industry coverage of the sample.Le papier examine l’impact de l’investissement en capital physique et humain sur la création d’emploi dans les entreprises marocaines. L’analyse économétrique est menée sur un échantillon de 664 entreprises de tailles et secteurs différents. Les enseignements tirés de cette analyse devraient être utiles à d’autres pays en développement. Les résultats montrent une forte relation de cause à effet entre l’investissement aussi bien en capital physique qu’humain et la création nette d’emploi dans les entreprises qui le réalisent. Cette conclusion résiste à différents tests de robustesse comme l’inclusion de variables explicatives additionnelles et la distinction des entreprises selon la taille et le secteur d’activité.

Date: 2011
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