Employment and Income in the Urban Informal Sector; a Case Study of Ka Tikala Producers in Assela Town
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Date
1999-06
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Addis Ababa University
Abstract
0ir:;P in Assela town. In order to achieve this, a multi-stage sampling procedure was
emp oyed. On the whole useable questionnaires were collected from 200 katikala
producing households in six systematically selected kebeles and 30 katikala distributors.
In order to achieve the objective, both descriptive and statistical analytical tools
have been utilised. Pearson 's product moment analysis model was employed to see
determinants of income in the activity.
The finding indicated that Katikala industry is found to support huge labour force
(almost entirely of female) particularly in the production sector. The lack of job
opportunity, family responsibility, insufficient family income from other sources are found
to be the major pushing factors of the operators into the activity. The producers are using
simple and rudimentmy tools and they work in in sanitary conditions.
The finding filrther revealed that Katikala producers found to generate an average
monthly income of I 02. 9 birr, while the distributors get avegare monthly income of 260.0
birr.
The problems of lack of capitals, their incom ({1m other sources and their family
size found to determine monthly income of the atakana roducers. Similarly, investing
capital" work experience and age of the distributors are found to be the principal
determinants of income to this group. The problems of housing, fluctuation of cost of input
and out put, infrastructural facilities and the rudimentary equpements used in the activity
and the backward techniques of production are found to be identified constraints among
the producers, where as the abcence of defined predetermined location for sale ~
lack and improper transportation are found to be constraints for the distributors.
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Keywords
Informal Sector