Education, gender and labour market outcomes in Tanzania: evidence from 2014 integrated labour force survey

The focus of this dissertation is on the effect of education and training on labor market outcomes in Tanzania by using 2014 Integrated Labour Force Survey (ILFS) data. First, we examine the effect of education and training on employment mobility in Tanzania by Multinomial Logit Model technique. The result suggests that an individual with secondary or tertiary education is more likely to be in wage employment but is less likely to be in agricultural and non-agricultural self-employment. The findings further suggest that an individual who acquired any training is more likely to be self-employed or engaged in wage employment, but is less likely to be not-working. Second, we estimate the returns to education by using ordinary least square and quantile regression techniques. The result shows existence of convexity in returns to education and the marginal returns to education increases considerably over the quantiles of earning distributions.Lastly, the size of the gender earnings gaps was estimated using Recentered Influence Function decomposition technique. The finding shows the declineof gender earnings gap towards the upper half quantiles and almost varnishing for the highest paid jobs. Thus, results from this study suggest that providing education to females would be a useful investment and good mechanism for realization of the national objective of women empowerment. Likewise, provision of training at different exit points of the general education can improve labour market outcomes. Policies should also give priority to interventions that narrow gender labour market inequality.