The aim of this paper is twofold. Building on Andreoni (2018), we first aim to evaluate the current incentive structures that cause existing inefficiencies and encourage rule-breaking behaviour. Second, we seek to test empirically a number of institutional design strategies for the sector that would better align the incentives of private- and public-sector stakeholders and thereby reduce misallocation of resources and increase employers’ compliance with tax and labour law to overcome the low-productivity trap. We hypothesise that the successful alignment of incentive structures has to take into account the different and potential
conflicting objectives of skills provision pursued by public-sector stakeholders and must also account for the heterogeneities in skills needs and capabilities of different types of productive organisations in Tanzania. We rely on in-depth stakeholder interviews and data
obtained from various government sources for the first objective. For the second objective, we conduct three Discrete Choice Experiments (DCEs) complemented by a comprehensive questionnaire of a sample of 209 Tanzanian establishments. This approach enables us to uncover latent preference structures differentiated by observable characteristics of the
Since the introduction of the Skills Development Levy (SDL) in Tanzania, the financing of skills training has been contested. The private sector has raised concerns about the size of the levy and the usefulness of training provided by VET centres, and has accused the government of misallocation and misuse of the raised levy. Lack of […]
The gap between national export premium and foreign-ownership premium is stronger in manufacturing firms as opposed to service sectors. Moreover, we find clear and strong productivity premia in size, training programmes and level of development in the manufacturing firms. In the services sector, these premia are always smaller and only significant for medium-sized firms. There […]
Can Smallholders benefit from the new market opportunities from the extractive industry in Tanzania?
The recent discovery of huge oil and gas reserves in Tanzania has created a new opportunity for economic growth and development of the country. Tanzania is expected to be one of the leading producers and exporters of natural gas in the coming decade. However, 88 percent of poor Tanzanians live in rural areas and two-thirds […]
This study has explored how quality issues in delivering family planning services (supply side), and attitudinal and behavioural issues of the potential users (demand side) merge together to influence adoption of family planning methods. The subject was explored by blending Bruce’s (1990) quality of care of family planning services framework with an access framework with […]