Protection and the Determinants of Household Income in Tanzania 1991 – 2007
This paper analyses the association between household characteristics – in particular size and location, and for the household head age, sector of employment (and the tariff applicable to that sector) and education - and household income using data from the Tanzania Household Budget Survey for the years 1991/92, 2000/01 and 2007. The static analysis of the determinants of household income is based on the full sample and is complemented by a dynamic analysis using a pseudo-panel (representative households). Larger households have lower income; living in urban areas is associated with income around one quarter higher than rural households; and location in the Coastal zone, which includes Dar es Salaam, increases household income by about 15% compared to the poorest region (Central). Years of education of the household head is associated with higher income: each additional year of education adds about 4.5%. Average incomes of agriculture households are lower than for manufacturing households, but within each broad sector incomes appear to be higher in sub-sectors with higher tariffs. Household income tends to increase in both tariffs and education, but the effect of tariffs diminishes or becomes negative for household heads with secondary education and alters over time. Observing that tariffs offer less protection to the incomes of more educated workers compared to less educated (less skilled) workers is consistent with better educated workers being more productive and therefore in firms, or sectors, better able to compete with imports. Given data limitations it would be incorrect to infer a causal effect of tariffs on household incomes. Nevertheless, the analysis is informative about the effect of the cross-sector pattern of tariff protection on household incomes allowing for other determinants.
|Date of creation:|
|Contact details of provider:|| Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD|
Phone: (44) 0115 951 5620
Fax: (0115) 951 4159
Web page: http://www.nottingham.ac.uk/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ann Harrison, 2007. "Globalization and Poverty," NBER Books, National Bureau of Economic Research, Inc, number harr06-1, December.
- Ariel Barraud & German Calfat, 2008.
"Poverty Effects from Trade Liberalisation in Argentina,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 44(3), pages 365-383.
- Barraud, Ariel A. & Calfat, Germán, 2005. "Poverty effects from trade liberalisation in Argentina," IOB Discussion Papers 2005.04, Universiteit Antwerpen, Institute of Development Policy (IOB).
- Barraud, Ariel & Calfat, Germán, 2006. "Poverty effects from trade liberalisation in Argentina," IOB Working Papers 2006.04, Universiteit Antwerpen, Institute of Development Policy (IOB).
- Edmonds, Eric V., 2008. "Child Labor," Handbook of Development Economics, Elsevier.
- Moffitt, Robert, 1993. "Identification and estimation of dynamic models with a time series of repeated cross-sections," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 99-123, September.
- L. ALAN WINTERS & NEIL McCULLOCH & ANDREW McKAY, 2015.
"Trade Liberalization and Poverty: The Evidence So Far,"
World Scientific Book Chapters,in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 14, pages 271-314
World Scientific Publishing Co. Pte. Ltd..
- L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
- Mª Dolores Collado, 1998. "Estimating binary choice models from cohort data," Investigaciones Economicas, Fundación SEPI, vol. 22(2), pages 259-276, May.
- Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
- McKenzie, D.J.David J., 2004. "Asymptotic theory for heterogeneous dynamic pseudo-panels," Journal of Econometrics, Elsevier, vol. 120(2), pages 235-262, June.
- Vincent Leyaro & Oliver Morrissey & Trudy Owens, "undated". "Food Price Changes and Consumer Welfare in Tanzania 1991 – 2007," Discussion Papers 10/01, University of Nottingham, CREDIT.
- Dominique van de Walle & Dorothyjean Cratty, 2004.
"Is the emerging non-farm market economy the route out of poverty in Vietnam?,"
The Economics of Transition,
The European Bank for Reconstruction and Development, vol. 12(2), pages 237-274, June.
- Van der Walle, Dominique & Cratty, Dorothyjean, 2003. "Is the emerging nonfarm market economy the route out of poverty in Vietnam?," Policy Research Working Paper Series 2950, The World Bank.
- Reimer, Jeffrey J., 2002. "Estimating the Poverty Impacts of Trade Liberalization," GTAP Working Papers 1163, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Reimer, Jeffrey J., 2002. "Estimating the poverty impacts of trade liberalization," Policy Research Working Paper Series 2790, The World Bank.
- Girma, Sourafel, 2000. "A quasi-differencing approach to dynamic modelling from a time series of independent cross-sections," Journal of Econometrics, Elsevier, vol. 98(2), pages 365-383, October.
- Nicita, Alessandro, 2004. "Who benefited from trade liberalization in Mexico? Measuring the effects on household welfare," Policy Research Working Paper Series 3265, The World Bank. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:not:notcre:10/03. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hilary Hughes)
If references are entirely missing, you can add them using this form.