Analyzing Rural-Urban Migrants’ Income Level in the Informal Sector: The Case Of street Vendor Of Yeka Sub-City Of Addis Ababa.
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Date
2019-06
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Addis Ababa University
Abstract
Street vending is an important source of income for many poorer segment of the society in the urban
area. Despite the informal sector absorbs for about 60 percent of the urban labor force in Ethiopia,
Migrants are unable to cover the costs of living in the cities and made it difficult for them to save and
remit money to their families. In light of this premise, this study was initiated to analyze migrants’
income level and explores migrants’ major challenges in the street vending business of Yeka sub
city, Addis Ababa, Ethiopia. The study used cross-sectional data collected from114 street
vendors individuals selected through simple random probability sampling techniques.
Descriptive statistics and econometric models were used to analyze the data. Logit model method
was employed to analyze determinant factors of the income level of migrants engaged in the
street vending business. The binary logit model result indicated that age of the household, source
of start-up capital to launch the street vending business, and years of experience in the street
vending business were significant factors affecting the incomes of migrants positively and
significantly. But, sex of the household, education level, and durations of stay in Addis Ababa
had negative and significant influence on the incomes of migrants. Based on the findings,
recommendations such as job linkages between technical and vocational education and training
/TVET/ to train and hire less educated migrants in respective areas to reduce the number of migrants
in the city, building the institutional capacity and facilitating the credit schemes as source of capital
are recommended.
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Keywords
Rural-urban migrants, income, informal sector, streets vending business, factors and challenges, Yeka Subcity, Addis Ababa, Ethiopia