An examination of the relationship between competences and wages of higher education graduates: Evidence from Morocco

Abstract

To provide research insights in line with the Tuning project approach, we estimate the effects of competences on wages of higher education graduates with work experience. Using the conventional earnings regressions methods (Mincer equation) on data from a survey of graduates, we investigate the way in which the labour market reacts and rewards competences. The results show small significant evidence for an effect of competences on wages in our dataset; however, methodological and social skills display positive payoff returns. Our empirical findings also suggest that the labour market rewards less specialised competences, and unlikely methodological and social competences are deemed more necessary compared to cognitive skills (theoretical knowledge). Finally, wages tend to decrease for those who are female and working in the private sector. Overall, the findings of the study are highly related to the specification and structure of the Moroccan labour markets.First published online: 30 November 2017

Keywords

• tuning approach
• competences and skills
• mincer equation
• higher education
• human capital
• wages
• labour market