Private sector development and income dynamics: A panel study of the Tanzanian labour market
In this paper, we use a three-period panel of Tanzanian households to explore the determinants of earnings and earnings growth from 2004 to 2006.� In doing so, we draw particular attention to the role of education and to the importance of heterogeneity between more and less formal occupations.� Several important conclusions emerge.� Education is found to have a significant convex effect upon earnings levels, but to have had no significant effect upon earnings growth (indeed, there is some suggestion that education may have had a negative impact).� This suggests that recent Tanzanian growth may have reflected an 'unskill-biased technological change', providing relative reward to informal skills rather than to formal education.� Further, there are interesting insights into the age-earnings relationship: the relationship is found significantly to be concave in levels, yet age is not found significantly to have affected earnings growth.� This suggests that the concave levels relationship is driven by workers' participation decisions, rather than by a concave earnings trajectory at the level of the individual worker.� Finally, we find significant evidence of variation between formal and informal enterprises, and between sizes of enterprises within these different employment sectors.
|Date of creation:||01 Feb 2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.economics.ox.ac.uk/
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.:
- Calves, Anne-Emmanuele & Schoumaker, Bruno, 2004. "Deteriorating Economic Context and Changing Patterns of Youth Employment in Urban Burkina Faso: 1980-2000," World Development, Elsevier, vol. 32(8), pages 1341-1354, August.
- Paul Cichello & Gary Fields & Murray Leibbrandt, 2003. "Earnings and Employment Dynamics for Africans in Post-apartheid South Africa: A Panel Study of KwaZulu-Natal," Working Papers 03077, University of Cape Town, Development Policy Research Unit.
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
- Carter, Michael R. & May, Julian, 2001. "One Kind of Freedom: Poverty Dynamics in Post-apartheid South Africa," World Development, Elsevier, vol. 29(12), pages 1987-2006, December.
- Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, August.
- Fields, Gary S. & Cichello, Paul & Freije, Samuel & Menéndez, Marta & Newhouse, David, 2003.
"Household income dynamics : a four-country story,"
Economics Papers from University Paris Dauphine
123456789/1562, Paris Dauphine University.
- Jan Willem Gunning & John Hoddinott & Bill Kinsey & Trudy Owens, 2000. "Revisiting forever gained: Income dynamics in the resettlement areas of Zimbabwe, 1983-96," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 131-154.
- Psacharopoulos, George, 1994.
"Returns to investment in education: A global update,"
Elsevier, vol. 22(9), pages 1325-1343, September.
- Psacharopoulos, George, 1993. "Returns to investment in education : a global update," Policy Research Working Paper Series 1067, The World Bank.
- Psacharopoulos, George & Patrinos, Harry Anthony, 2002.
"Returns to investment in education : a further update,"
Policy Research Working Paper Series
2881, The World Bank.
- George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
- Gary Fields & Paul Cichello & Samuel Freije & Marta Menéndez & David Newhouse, 2003.
"For Richer or for Poorer? Evidence from Indonesia, South Africa, Spain, and Venezuela,"
Journal of Economic Inequality,
Springer, vol. 1(1), pages 67-99, April.
- Fields, Gary S. & Cichello, Paul & Freije, Samuel & Menéndez, Marta & Newhouse, David, 2003. "For Richer or for Poorer ? Evidence from Indonesia, South Africa, Spain, and Venezuela," Economics Papers from University Paris Dauphine 123456789/1560, Paris Dauphine University.
- Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
- John Dreze & Peter Lanjouw & Nicholas Stern, 1992. "Economic Mobility and Agricultural Labour in Rural India: A Case Study," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 27, pages 25-54.
When requesting a correction, please mention this item's handle: RePEc:oxf:wpaper:wps/2008-09. 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: (Caroline Wise)
If references are entirely missing, you can add them using this form.