Extent of over Education and under Education in Tanzanian Formal Labour Market

Abstract

This paper attempts to provide the extent of over education and under education among formal sector workers in the labour market of Tanzania. The cross sectional and Worker Self Assessment (WSA) techniques were employed on 319 workers to collect data using Office interviews. Results from Multinomial logit model (classification tables) show that, 30.4% and 12.5% of the workers were under educated and over educated respectively. In terms of sex, male workers experience high incidence of both over education and under education due to historical and cultural nature of Tanzanian education system; and also the recruitment system   that deliberated to favour males. Using Pearson chi square approach, results show that both public and private sectors experience education –job mismatch differently with more under educated workers in the public sector. Therefore, Tanzania formal labour market is not free from Over education and under education. This state of affairs  calls for the private and public employers to redesign demand side and supply side education –job matching policies.

Key words: over education, under education, labor policy, education – job mismatch, formal sector, Tanzania