Socioeconomic Factors Influencing Labour Productivity in the Manufacturing sector in the coast region, Tanzania.

Mfugale, Winniemary Erasto (2023) Socioeconomic Factors Influencing Labour Productivity in the Manufacturing sector in the coast region, Tanzania. Masters thesis, The Open University of Tanzania.

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Abstract

This study aims at assessing the socio economic determinants of Labour productivity in manufacturing sector, a case of Pwani Region. The main objective was to assess the influence of employee wage, human capital and firm working environment on labour productivity. The study applies Ordinary Least Square (OLS) technique to analyze the Labour productivity multiple regression model by using cross sectional data and tested for linearity, homoscedasticity,multicollinearity and normality. The study adopted human capital theory, Wage efficiency theory and theory of production. The target population was 384 employees from food processing industries in the region. The study adopted stratified sampling technique. Findings indicate that Human capital, employee wage and firm working environment have positive and significant relationship with Labour productivity and all variables had positive association with labour productivity.. The study recommends that the government to encourage technical training, mentoring technology transfer, and employers should hire educated workers since they have high chance of increasing labour productivity. More educational instructions such as primary and secondary schools, colleges, universities should be established and young people should be motivated to join. This is due to the reason that, educated workers with required knowledge and skills are more innovative which leads to increased labour productivity. Keywords: Socioeconomic Factors, Manufacturing Sector, Labour Productivity.

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