This paper analyses the causes of social exclusion. It specifically explores the reasons why an individual experiences social exclusion today on the assumption that this may lead to similar experiences in the future. Results show that economic social exclusion is still very large and highly persistent over time. Results show that, social exclusion in Tanzania is relatively high. Results suggest that social exclusion dynamics in Tanzania is to a large extent triggered by observed characteristics (economic adversities) as compared to unobserved heterogeneity. These results can help to formulate and improve policies which are directed toward poverty reduction and social exclusion.