22 research outputs found
The returns to vocational training and academic education: Evidence from Tanzania
In this paper we ask what can account for the continuing strong preference for academic education in Africa where the level of development is so low and there are few wage jobs and which form of educational investment, the academic or vocational, is most profitable. We argue that the answers to these questions are linked through the shape of the earnings function and the importance of firm effects. High levels of academic education have far higher returns than those available either from vocational or lower levels of academic. However at lower levels the vocational return can exceed the academic.Vocational and General education in Tanzania, manufacturing, training.
The Dynamics of Returns to Education in Kenyan and Tanzanian Manufacturing
The returns to education remain a central concern for development policy. In developed countries there is evidence that the returns to education have been rising.Evidence for changes over this period for developing countries is limited. In this paper we use data from Kenya and Tanzania to estimate returns to education for manufacturing workers and examine how these returns have changed from 1980 to the late 1990s. We find strong evidence that the earnings function is convex for both countries and document significant differences in the earnings profiles across cohorts, typically with stronger convexity amongst the young. We also find evidence of increasing convexity over the 1990s in Tanzania, but remarkable stability in Kenya.We test for the importance of ability bias and find convexity robust to endogeneity. Treating education as an endogenous explanatory variable generally results in higher estimated returns to education than what is obtained by OLS. Potential reasons for this result are discussed.Returns to education, Africa, Kenya, Tanzania, manufacturing
The Dynamics of Returns to Education in Kenyan and Tanzanian Manufacturing
The returns to education remain a central concern for development policy. In developed countries there is evidence that the returns to education have been rising. Evidence for changes over this period for developing countries is limited. In this paper we use data from Kenya and Tanzania to estimate returns to education for manufacturing workers and examine how these returns have changed from 1980 to the late 1990s. We find strong evidence that the earnings function is convex for both countries and document significant differences in the earnings profiles across cohorts, typically with stronger convexity amongst the young. We also find evidence of increasing convexity over the 1990s in Tanzania, but remarkable stability in Kenya. We test for the importance of ability bias and find convexity robust to endogeneity. Treating education as an endogenous explanatory variable generally results in higher estimated returns to education than what is obtained by OLS. Potential reasons for this result are discussed.Returns to education, Africa, Kenya, Tanzania, manufacturing
TRADE FACILITATION, ICT AND MANUFACTURED EXPORT PERFORMANCE IN TANZANIA: WHAT IS THE MISSING LINK?
This study assesses the missing links between ICT and trade facilitation in influencing exports and productivity of Tanzanian manufacturing enterprises. It focuses on testing the hypothesis that application of Information and Communication Technology (ICT) at firm level and adaptation of appropriate trade facilitation policies have a causal impact on the quality and quantity of manufactured exports, productivity and investment. The main argument is that, despite the remarkable and impressive record of Tanzanian economic performance and efforts to attain a knowledge economy, performance of the manufacturing sector has stagnated. Low levels of technology usage, inadequate and low levels o
Job creation in Tanzania : what types of jobs are being created and where?
The project aims to provide a better understanding of labour market adjustment at the firm, sectoral and aggregate levels in Tanzania. The paper is a work in progress. It proposes an econometric model, and further analysis of the enterprise and household level information, which will be undertaken after completion of data cleaning and validation
Outcomes of Worker Effort and Supervision in Tanzanian Labour Market
This paper examines the impact of work effort and supervision in the Tanzanian labour market. In particular it focuses on the extent to which observed earnings and productivity of a worker might be influenced by both the individual effort of a worker and intensity of supervision. To assess the earnings effect of work effort, the paper estimates the hourly earnings equation, which includes work effort and monitoring intensity among the determinants of the hourly earnings. The estimates control for unobserved firm specific effects and GMM production functions. Key findings of the paper are that a worker who exerts higher effort at work increases hourly earnings by about 27 per cent. Estimates of productivity affect via GMM shows that increase in the monitoring intensity increased the gross output per employee by about 34 per cent. The estimated coefficient is stable even after a range of factors are controlled for. The paper concludes that labour market reforms introduced in Tanzania on increased autonomy and flexibility of firm level work supervision and pay have positive outcomes for both employers and employees
Job Creation in Tanzanian Labour Market: Where &What Types of Jobs Are Being Created?
This paper examines the process of job creation in Tanzania by addressing the question: what types of jobs are being created and where? To address these questions the paperâs conceptual framework and strategies consider the interrelation between the number of jobs that can be created in a labour market segment, the quality of jobs in terms of human capacity requirement, productivity and remuneration. The specific method for capturing job creation used by the paper are estimates of the labour market, indexes of job creation and job destruction at sectoral level. The paper findings are that job creation in Tanzania is mostly happening in traditional agricultural sector and urban informal sector, as both employ over 90% of the working population. The absorption capacity in the formal sector jobs is very small and there are indications that it will remain so even in the near future. Large numbers of the jobs created are vulnerable jobs in which earnings are below US1-5 per day. Therefore, a high rate of growth in modern sector employment can only be generated by high GDP growth, typically spearheaded by industrialization, modern services, finance, business and the related sectors
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Dynamics and Trends of Mining in Tanzania: A Cointegration Approach, 1966-2023
This paper examines trends and dynamics of the Mining sector of Tanzania over a time span of 100 years. To do so, econometrics analysis is used to estimate cointegration model for trends within the span of time from 1966 till 2023. Qualitative analysis is also undertaken and empirical findings confirm five distinct regimes of mining sector performance since 1898 namely; the gold boom from 1898 till 1950, diamond boom from 1950 up to 1966, drastic fall from 1966 till 1997, recovery from 1997 up to 2010 and gold boom from 2010 to date. Tracing from 2000 when Vision 2025 was adopted, paper estimates show that the mining sector performance has been extraordinary from 1 percent in 1997 to 10 percent share of GDP by 2023 and export contribution has increased from US dollar 26 million in 1997 to 2.9 billion by 2023. Legal, regulatory and institutional frameworks at sectoral and macro level substantially influence the observed performance. The paper shows that the error correction term is correctly signed and statistically significant and, the coefficient of minerals export is statistically significant such that a 1 percent increase in mineral export will lead to a 0. 43 percentage increase of total export in the long run, with 77 percent speed of convergence to equilibrium. In terms of contribution to GDP, the results show that 1 percent increase in minerals production lead to 0.16 percent increase of GDP. Further analysis of the paper demonstrates high intensity of the correlation, integration and linkages effects between mining sector with other sectors particularly manufacturing. Thus, mining sector generally has potential to maximize gains from economic and social development whereas discovery of huge deposits of rare earth elements in Tanzania and availability of wide range of industrial mineral in nearly all regions of Tanzania have a potential of becoming a new backbone of Tanzania and enable manufacturing contribution over 30 percent of GDP
Determinants of real earnings and productivity in Tanzanian manufacturing firms
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