Ill Health and Labour Market Participation in Tanzania: Empirical Evidence from Tanzania National Panel Surveys

Abstract

This paper examines the effect of ill health status on labour participation in Tanzania using panel methods with data extracted from three waves of the National Panel Survey datasets of 2010/11, 2012/13, and the extended panel of 2019/20. Based on estimated random effect probit models, the results show that chronic ill health status has a significant negative effect on labour market participation in Tanzania. By locality, both chronic and acute ill health are significant and negative on labour participation in rural areas; whereas by sex chronic ill health is significant and negative on male’s participation. Therefore, the study recommends the adoption of more effective policies and interventions to reduce the prevalence of chronic and acute illness so as to bring more Tanzanians into the labour force. Also, it recommends mainstream employment policy actions to support those with partial work capacity from incurable ill health conditions to take up jobs.