Real Wages and Labour Productivity in Tanzania: How Do They Link?
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Date
2015
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Journal of African Studies and Development
Abstract
Using data from national level surveys, the present paper undertakes an empirical an empirical analysis of the linkage between labour productivity and real wages in Tanzania. After making tabular presentations of growth in labour productivity and real wages by industry and sector (public and private), regression analysis is undertaken to examine the factors that influence incomes. Granger causality is applied to examine nature of relationship between real wages and productivity for manufacturing industries. The paper finds no clear pattern in the link between real wages and productivity. Real incomes in the private sector have registered negative growth while the opposite has been the case in the public sector. In addition to education, age, occupation and location are found to be important determinants of income.
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Islam, R., Kinyondo, A. and Nganga, J. (2015). “Real Wages and Labour Productivity in Tanzania: How Do They Link?”). Journal of African Studies and Development, 7(3), pp. 81-98.