Benefits of enhanced access to education in Tanzania

Abstract

Motivation Expanding access to education is a desirable policy. Tanzania implemented Universal Primary Education (UPE) in 2001 and expanded secondary education in 2006. However, evidence that UPE delivers benefits in educational attainment or earnings is scarce. We investigate if the enhanced access to education (EAE) in the 2000s benefitted the youth able to complete more schooling, those aged 15–25 in 2018. Purpose There is evidence that expansion of primary education in Tanzania in the 1970s increased the incomes of the individuals who benefitted. We compare households headed by youth aged 15–25 and by adults (aged over 35) in 2001 and 2018 to identify benefits of EAE. Methods and approach Household welfare is measured as consumption per adult equivalent relative to the national poverty line using Household Budget Survey data for 2001 and 2018. We examine whether welfare differences comparing youth-headed and adult-headed households in 2001 and 2018 are attributable to differences in educational attainment of youth due to EAE using regression analysis and decomposition methods. Findings The increase in youth educational attainment by 2018 is a significant factor explaining the increase in welfare of youth-headed households between 2001 and 2018. If the youth in 2001 had the same education endowment as their 2018 counterparts, their relative welfare would have been about a quarter higher. If adults had the same level of educational attainment as the youth, their welfare would have been about a third higher in 2018. Policy implications Expanding access to education via EAE had a positive effect on the welfare of youth, represented by those who were heads of households, in Tanzania due to increased years of schooling, providing support for implementing policies that improve access to schooling. Benefits are greatest for younger youth, aged 19–24 in 2018. Returns to schooling declined, suggesting that growth in demand for skilled labour did not match the supply of educated entrants to the labour force.