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

Author

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  • Al-Samarrai, Samer
  • Reilly, Barry

Abstract

The empirical evidence on the earnings of educated groups in Tanzania is limited. This study uses a recently completed tracer survey of secondary school completers to analyse the impact of educational qualifications on labour market earnings. Our findings suggest 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. Information contained in the tracer survey allowed the introduction of 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. Our analysis reveals that the inclusion of these controls in the earnings determination process is important and tends to reduce 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.

Suggested Citation

  • Al-Samarrai, Samer & Reilly, Barry, 2006. "Education, Employment and Earnings of Secondary School and University Leavers in Tanzania: Evidence from a Tracer Study," MPRA Paper 129, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:129
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. repec:dau:papers:123456789/10593 is not listed on IDEAS
    5. Jad Chaaban & Wael Mansour, 2012. "The Impact of Remittances on Education in Jordan, Syria and Lebanon," Working Papers 684, Economic Research Forum, revised 2012.

    More about this item

    Keywords

    education; labour markets; school leavers;

    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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