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Real Wages And Labour Productivity In Tanzania: How Do They Link?, Abel A. Kinyondo, Rizwanul Islam, Joseph Nganga

Abel Alfred Kinyondo

Using data from national level surveys, the present paper undertakes an empirical analysis of the linkage between labour productivity and real wages in Tanzania. After making tabular presentations of growth in labour productivity and real wages by industry and sector (public and private), regression analysis is undertaken to examine the factors that influence incomes. Granger causality test is applied to explain the nature of the relationship between rel wages and productivity for manufacturing industries. The paper finds no clear pattern in link between real wages and productivity. Real incomes in the private sector have registered negative growth while the opposite …