Education and Labour Earnings Inequality in Tanzania: Evidence from Quantile Regression Analysis

Cornel J. Mlacha and Michael Ndanshau ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper aims to investigate the relationship between education and labour earning inequalities by using 2014 Integrated Labour Force Survey data for Tanzania. The quantile regression method is applied to compute returns to education at different points of earnings distribution. The estimation result reveals that there is significant variation in the coefficients of marginal returns to education across earning distributions; and, the estimated coefficients are higher at the top of earning distribution. This finding suggests education could contribute to widening of earnings dispersion in Tanzania. Accordingly, it is important to have policy in Tanzania to reduce disparities in the levels of education attained between the least and the most educated individuals.

Keywords: Earning Inequality; Returns to Education; Quantile Regression; Tanzania. (search for similar items in EconPapers)
JEL-codes: I24 I26 (search for similar items in EconPapers)
Date: 2018-09-15
New Economics Papers: this item is included in nep-dev
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