What do we know about wages in Tanzania?

From AfricaCan End Poverty Thu Dec 27 2012, 16:02:48

Waly Wane

Let's think together: Every Sunday the World Bank in Tanzania in collaboration with The Citizen wants to stimulate your thinking by sharing data from recent official surveys in Tanzania and ask you a few questions.

How much a worker earns for her or his labor is important for different reasons. First, it matters with regard to poverty since labor income counts usually for an important share of households' revenue. Secondly, it influences firms' competitiveness, especially for labor intensive activities such as manufacturing and agriculture. Thirdly, it is relevant for equity as anybody should expect a fair remuneration for his efforts. It is therefore not surprising that wages have attracted a lot of attention from economists and policy makers across the world over the years.

In Tanzania, only one third of workers report earning a wage for their labor. However, this number is growing relatively fast, especially in urban areas. A look at the statistics collected from the Tanzanian private sector highlights three interesting results:

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