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Labour Market Entry and Earnings: Evidence from Tanzanian Retrospective Data

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  • Sarah Bridges
  • Louise Fox
  • Alessio Gaggero
  • Trudy Owens

Abstract

We exploit a unique dataset of retrospective information from urban Tanzania to estimate the effect of early labour market experiences on adult labour market outcomes. We consider four labour market entry states – wage employment, selfemployment, employment in the family business, and unemployment - and estimate how final earnings are associated with that entry state. The findings suggest that how individuals enter the labour market does matter for final outcome. We find that for those able to access wage employment, an initial period of unemployment while searching for a wage job may be preferred to an initial period in self-employment or the family business. However, for the two thirds who searched for an average of 5 years and still did not find a wage job, the gamble does not pay off.

Suggested Citation

  • Sarah Bridges & Louise Fox & Alessio Gaggero & Trudy Owens, 2013. "Labour Market Entry and Earnings: Evidence from Tanzanian Retrospective Data," Discussion Papers 13/05, University of Nottingham, CREDIT.
    • Handle: RePEc:not:notcre:13/05
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    Cited by:

    1. Nicola Banks, 2014. "What works for young people's development? A Case Study of BRAC's Empowerment and Livelihoods for Adolescent Girls programme in Uganda and Tanzania," Global Development Institute Working Paper Series 21214, GDI, The University of Manchester.
    2. Ms. Louise Fox, 2015. "Are African Households Heterogeneous Agents?: Stylized Facts on Patterns of Consumption, Employment, Income and Earnings for Macroeconomic Modelers," IMF Working Papers 2015/102, International Monetary Fund.

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