The Effect of Rural – urban Migration on Informal Economy Sector (In Addis Ababa: The Case of Yeka Sub City).
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Date
2021-06
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Addis Ababa University
Abstract
The urban informal economy sector plays a vital role in generating employment, income
generation, and skill development. The contribution and the size of the informal economy sector
vary from country to country. It is the main source of livelihood for the people of many cities
today. The objective of this study is to investigate the effect of Rural-Urban migration on the
informal economy sectors. The study was conducted in Addis Ababa city by taking Yeka sub-city
as a case study. The reason Yeka sub-city has been selected was that massive informal operators
are concentrated. The study has used both qualitative and quantitative research methods. Both
primary and secondary data have been employed and the primary data was collected through
observation, survey, and key informant interview. The secondary data was gathered from
published and unpublished documents obtained from institutions in order to generate additional
information for the study. The researcher has taken 331 samples of street venders for survey
questionnaire. In-depth interview was also conducted with selected government officials. The
study found out that there is a significant relationship between rural-urban migration and growth
of informal economy activities. The study also reveals that informal sectors operators leave their
origin in search of job opportunities and better life. In the study area the informal economic
activities is growing from time to time and also it is influencing widely the economic, social, and
institutional phenomena. Formal businesses are often complaining about unfair competition from
their peers in the informal sector. Furthermore, informal economic activities are affecting the
mobility of people and the transportation system. As recommendation the regional government
should work hard in creating job opportunities and economic development. Rural economic
development is crucial element to prevent unnecessary rural- urban migration and informal
economy growth in the urban area. The city administration should give emphasis for informal
operators by providing loans and encouraging them to establish formal shops by giving training,
and skills
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Keywords
Rural – Urban migration