Determinants of Employability in the Informal Sector Among the Youth in Tanzania

Christopher N. Mdoe; Ezekiel Kanire; Stephen Bishibura Erick

doi:10.51867/ajernet.5.4.136

Authors

Christopher N. Mdoe
cmdoe@irdp.ac.tz
Institute of Rural Development Planning, P.O Box 11957, Mwanza, Tanzania https://orcid.org/0000-0002-8430-4698
Ezekiel Kanire Institute of Rural Development Planning, P.O Box 11957, Mwanza, Tanzania https://orcid.org/0000-0003-3126-0596
Stephen Bishibura Erick Institute of Rural Development Planning, P.O Box 11957, Mwanza, Tanzania https://orcid.org/0009-0007-1400-9734

Keywords:

Employability, Informal Employment, Informal Sector, Probit Regression, Youth

Abstract

This study investigates the determinants of employability in the informal sector among youth in Tanzania using data from Integrated Labor Force Survey (ILFS) conducted in 2020/2021, utilizing probity regression analysis. Human Capital Theory guided this study. The model, statistically significant at a 1% level, indicates that variables including sex, capital access, income tax, social security, technical and computer skills, literacy and numeracy skills, physical skills, business registration, ownership, age, marital status, readiness for work, and education level collectively account for 4.4% of variations in youth employability. Positive impacts on employability are associated with capital access, numeracy and computer skills, paid employment, and level of education. The negative impacts are being male, income tax, social security coverage, literacy skills, physical skills, registered and owned businesses, married individuals, age, and readiness for work. The study suggests that attending school and possessing computer skills increases the likelihood of informal sector employment, while being male, subjected to income tax, covered by social security, having literacy skills, physical skills, registered or owned businesses, being married, aging, and being ready for work decrease the probability. The findings emphasize the importance of targeted interventions to enhance employability for youth in the informal sector, with considerations for gender, skills development, and business practices. Research recommended that enhancing access to education, programs in skill development and improving numeracy, computer skills to the youth will foster employability for the youth.

Dimensions

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