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Education, Employment and Earnings of Secondary School and University Leavers in Tanzania: Evidence from a Tracer Study

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  • Samer Al-Samarrai
  • Barry Reilly

Abstract

This study uses a tracer survey of secondary school completers in Tanzania to analyse the impact of educational qualifications on labour market earnings. We show that the rates of return to the highest educational qualifications for wage employees are not negligible and, at the margin, provide an investment incentive. However, we find little evidence of human capital effects in the earnings determination process for the self-employment sector. Introducing controls for father's educational background and a set of school fixed effects designed to proxy for school quality and potential labour market network effects reduces the estimated rates of return to educational qualifications. A comparison of our results with the available evidence from other countries in the region suggest that, despite an extremely small secondary and university education system, the private rates of return to education in the Tanzanian wage employment sector are comparatively low.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 44 (2008)
Issue (Month): 2 ()
Pages: 258-288

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Handle: RePEc:taf:jdevst:v:44:y:2008:i:2:p:258-288

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References

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  1. Måns Söderbom & Francis Teal & Anthony Wambugu & Godius Kahyarara, 2004. "The Dynamics of Returns to Education in Kenyan and Tanzanian Manufacturing," Development and Comp Systems 0409041, EconWPA.
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Cited by:
  1. Nerman, Måns & Owens, Trudy, 2010. "The Push Towards UPE and the Determinants of the Demand for Education in Tanzania," Working Papers in Economics 472, University of Gothenburg, Department of Economics, revised 13 Mar 2012.
  2. Christophe Muller, Christophe J. Nordman, 2008. "Intra-Firm Human Capital Externalities in Tunisia," THEMA Working Papers 2008-38, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  3. Christophe Muller & Christophe Nordman, 2011. "Within-Firm Human Capital Externalities in Tunisia," Journal of Development Studies, Taylor & Francis Journals, vol. 47(4), pages 657-675.
  4. Mohamad Fahmi, 2009. "School Choice and Earnings: A Case of Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 200914, Department of Economics, Padjadjaran University, revised Sep 2009.

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