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Skill Use, Skill Deficits, and Firm Performance in Formal Sector Enterprises : Evidence from the Tanzania Enterprise Skills Survey, 2015

SKILLS LOW EDUCATIONAL ATTAINMENT EDUCATIONAL RESEARCH BASIC EDUCATION FORMAL EDUCATION TEACHERS SKILLED WORKERS PRIVATE ENTERPRISES SCHOOLING NUMERACY ENROLLMENT SKILLS DEVELOPMENT GROUPS STUDENT FLOW NEEDS ASSESSMENT STRATEGIES LEVELS OF EDUCATION HIGHER EDUCATION PAPERS SCHOOL LEAVERS TECHNOLOGICAL INNOVATION COLLEGES TRAINING PROGRAMS APPROPRIATE TRAINING SKILL MIX TRAINING CENTERS FACULTY TRAINEES LITERACY KNOWLEDGE EDUCATED WORKERS CRITICAL THINKING EDUCATION STATISTICS PROFICIENCY MATHEMATICS QUALITY OF EDUCATION TRAINING ACHIEVEMENTS PARTNERSHIPS EDUCATIONAL ATTAINMENT SECONDARY SCHOOLS SECONDARY STUDENTS SECONDARY SCHOOL TRAINING MATERIALS WRITING SKILLS VOCATIONAL EDUCATION LEARNING GRADUATES FORMAL TRAINING EDUCATION SYSTEM JOB TRAINING OCCUPATIONAL SKILLS PRIMARY SCHOOL EDUCATION ATTAINMENT SCHOOL ENROLLMENTS PROBLEM SOLVING STUDENT LOANS AVERAGE SCHOOLING ENROLLMENT RATIOS ASSESSMENTS READING TECHNOLOGY VOCATIONAL TRAINING STUDY EDUCATIONAL PROBLEMS TRAINING COURSES STUDIES SKILLS TRAINING SCIENCE TRAINING INSTITUTES REGIONAL TRAINING VALUES SCHOOLS EDUCATION INSTITUTIONS CURRICULA LEARNING OUTCOMES QUALITY STANDARDS OCCUPATIONS SKILLED WORKFORCE SCHOOL GRADUATES PRIVATE EDUCATION INDEXES EDUCATION LEVEL CAMPAIGNS PRIMARY GRADUATES EDUCATIONAL INSTITUTIONS WORKSHOPS EDUCATIONAL INVESTMENTS ACCREDITATION BASIC LITERACY COGNITIVE SKILLS WRITING LEVEL OF EDUCATION CHILDREN SCIENCE TEACHERS EDUCATION SKILL DEVELOPMENT INVESTMENT STATISTICS TYPES OF EDUCATION SERVICE TRAINING EDUCATIONAL SKILLS YOUNG PEOPLE FACILITIES BASIC EDUCATION STATISTICS STUDENTS PRIMARY LEVEL ORGANIZATIONAL CHANGE LOWER SECONDARY LEVEL PRIVATE PARTNERSHIPS TECHNICAL EDUCATION QUALITY ASSURANCE NUMBER OF STUDENTS LOCAL SECONDARY SCHOOLS FEES PRIMARY EDUCATION CONTINUING EDUCATION SCHOOL SECONDARY EDUCATION TERTIARY EDUCATION STUDENT LEARNING LOWER SECONDARY EDUCATION UNIVERSITIES
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World Bank, Washington, DC
Africa | Tanzania
2016-06-13T21:42:38Z | 2016-06-13T21:42:38Z | 2016-05

Inadequacies in Tanzania's education and training systems compromise the quality of workforce skills, giving rise to skill shortages, and constraining the operations and growth of formal sector firms in the country. This study addressed these concerns using data from a unique Enterprise Skills Survey that asked Tanzanian employers about the education, training, and occupational mix of their workforce, the skill gaps in cognitive, noncognitive, and job-specific competencies affecting their operations, and the strategies they are using to overcome these skill gaps. The study investigates the consequences for firm productivity of employers' choices about their optimal skills mix, and their strategies to mitigate shortfalls in skills supply. Compared with noninnovators and firms primarily serving the domestic market, exporters and innovators face greater skill demand and suffer from skill shortages that are more likely to constrain their operations in such areas as quality assurance, use of new technology, and introducing new products and services. In analyzing firm performance and its relation to skill mix, the study found that firms with higher shares of tertiary-educated workers are more productive; it found no impact, however, from secondary education and technical vocational education and training qualifications, possibly reflecting the universally acknowledged poor quality of secondary education in Tanzania. Employers use a range of strategies to address skill deficiencies, from hiring new workers, to training current workers in-house or externally, using high-skill expatriate workers, or outsourcing professional services. Almost all were associated with higher labor productivity. The exception, employer provided in-house training, had no measurable impact on productivity.

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