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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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  • Samer Al-Samarrai & Barry Reilly, 2008. "Education, Employment and Earnings of Secondary School and University Leavers in Tanzania: Evidence from a Tracer Study," Journal of Development Studies, Taylor & Francis Journals, vol. 44(2), pages 258-288.
    • Handle: RePEc:taf:jdevst:v:44:y:2008:i:2:p:258-288
    DOI: 10.1080/00220380701789950
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    Cited by:

    1. Livini Donath & Oliver Morrissey & Trudy Owens, 2021. "Does the pay period matter in estimating returns to schooling? Evidence from East Africa," Discussion Papers 2021-01, University of Nottingham, CREDIT.
    2. Girijasankar Mallik & Parikshit K. Basu & John Hicks & Richard Sappey, 2014. "Do the Determinants of Employability and Earnings Returns Produce Similar Outcomes in Metropolitan and Regional Labour Markets? The Case of New South Wales, Australia," Regional Studies, Taylor & Francis Journals, vol. 48(10), pages 1706-1718, October.
    3. 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.
    4. Livini Donath & Oliver Morrissey & Trudy Owens, 2022. "Universal primary education and household welfare in Tanzania," Discussion Papers 2022-02, University of Nottingham, CREDIT.
    5. Ebo Botchway & Kofi Fred Asiedu, 2020. "Ownership type and earnings gap decomposition: Evidence from the Ghanaian labor market," African Development Review, African Development Bank, vol. 32(4), pages 619-631, December.
    6. 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.
    7. Jad Chaaban & Wael Mansour, 2012. "The Impact of Remittances on Education in Jordan, Syria and Lebanon," Working Papers 684, Economic Research Forum, revised 2012.
    8. 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.
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    10. Livini Donath & Oliver Morrissey & Trudy Owens, 2023. "Benefits of enhanced access to education in Tanzania," Development Policy Review, Overseas Development Institute, vol. 41(3), May.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I2 - Health, Education, and Welfare - - Education

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