Factors influencing inter-industry wage differential in Tanzania

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University of Dar es Salaam
This study examines factors which influence inter-industry wage differentials in Tanzania. It does so by investigating the extent to which these inter-industry wage differentials are associated with a range of individual workers, job and industry characteristics. The analysis in the thesis is facilitated by estimating wage function, controlling for a broad range of observable firm characteristics. The findings from the wage functions confirmed wage differential across industry in Tanzania. However, controlling for observed heterogeneity in employee and industries dummies does reduce these differentials significantly but there are still considerable wage differentials between industries. The major industries which we noted substantial wage gap of 20-70 per cent below the categorical reference are now 0.5-16 percent below the categorical reference. Moreover, for almost all the occupations dummies are statistically significant at the customary level in explaining interindustry wage differential. The study concludes that, there are considerable differences in wages across industries in Tanzania. Interestingly, a larger industry tends to pay more.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library
Inter-industry, Wage, Tanzania
Mushi, N. A (2009) Factors influencing inter-industry wage differential in Tanzania, Master dissertation, University of Dar es Salaam.