Informal Sector Activities Research Articles

Analysis of Factors that Influence Land Use Dynamics in Nigeria

The peculiar nature of land use dynamics is one of the main challenges besetting Nigerian cities. It has created environmental problems, urban sprawl and haphazard development. This paper identified factors that influence land use dynamics in Nigeria using Benin and Enugu to represent organic and inorganic cities. The study covers a period ranging from 1980 to 2010. Both primary and secondary sources of data were used extensively in this study. Principal component analysis was used to identify and classify factors that influence land use dynamics. The results show that eight factors namely housing development, communications, physical features, housing conversion, socio-physical feature, security, and physical development influenced land use dynamics in Enugu. For Benin-City, seven factors, namely public utilities, housing development, security, infrastructure, climatic condition, demography, and physical features accounted for the land use dynamics. This implies that informal sector activities were the main driver of land use dynamics in Nigeria. There is need to consider factors of land use dynamics in the formulation of urban development policy.

Entrepreneurship and conflict resolution: The role of women in environmental economics

Women play an important role in supporting the environment economics, especially in supporting the independence of the area around the forest through entrepreneurial activities. This study aims to analyze the relationship between social conflict and natural resources, especially in forest areas, and identify the role of women in conflict resolution management through the use of natural resources. Since women have the skills and knowledge in processing natural products, it has been utilized as a strategy to minimize social conflicts. Social conflict closely related to natural resources due to dissatisfaction from the community. Conflicts in forestry areas will persist as long as differences in interests among stakeholders still exists. For this reason, the role of women in processing natural products becomes essential. Even though the activity is one of the informal sector activities, it can support the family economy if conducted optimally. This study found that the role of government was insufficient in supporting entrepreneurial activities in remote areas, especially in forest areas. Research data showed that there are still many village women who do not have skills in processing natural products. The condition is a result of the lack of collaboration between the government and the private sectors.

Education and wage inequality in the informal sector: The case of Cameroon

AbstractThis article analyses the effects of education on wage inequality in the informal sector in Cameroon. The author uses quantile regression on data from the Second survey on employment and the informal sector in Cameroon (EESI 2) of 2010. The results indicate that both wages and wage inequality increase with education in the informal sector, with tertiary education creating greatest inequality. These findings point to a number of policy recommendations for a transition to formality, such as the creation of more jobs for a skilled workforce, the development of sites adapted to informal sector activities and the creation of more vocational schools.

Solid Waste Management Cost Function Analysis in Industrialising Cities: Lessons from the Healthcare Sector

Better solid waste management (SWM) is a critical need for many industrialising cities in the world, with institutional and financial issues critical to improving management. Great progress was made from 1970–2000 in estimating the costs for healthcare in industrialising cities, while to date very little progress has been made in improving cost function analyses on SWM. The similarities between the two sectors are strong, and the history of healthcare cost function analysis used to elucidate a pathway to improved cost function analyses for industrialising cities. The following cost function issues are explored: economy of scale, marginal cost analysis, cost function analysis, economies of scope, relationship between size of service provider and costs, accounting for outpatient and informal sector activities, input prices and ownership and control. The recommendation is that future work on SWM cost analysis should prioritise (1) analysis of which variables need to be included or can be excluded in cost function analysis, (2) use of cost functions to analyse questions related to service provision and (3) collection of more and more appropriate data to allow development of cost functions analysis methods specifically suited to SWM in industrialising cities.

The opportunities and value-adding activities of buy-back centres in South Africa's recycling industry: A value chain analysis

This paper investigates the entrepreneurial opportunities and value-adding activities of buy-back centres in the recycling industry. Using Porter’s firm-level value chain framework as theoretical framework for this analysis, a concurrent mixed method design was used to collect information from 67 buy-back centres across South Africa by means of face-to-face interviews, accompanied with a questionnaire with open-ended and close-ended questions. Buy-back centres’ competitive advantage is that they have the facilities to add value to the recyclables according to the recycling industry’s standards and specifications. To be viable, they need to attract large and sustainable volumes of recyclables, which often poses a challenge. Increased volumes of recyclables can translate into more jobs and income earning opportunities at all hierarchical levels in the recycling industry. A recycling model that increases the volumes of recyclables recovered by buy-back centres through informal sector activities is proposed. Such a model should facilitate changing citizen behaviour and implementation of, among others, responsible separation at source programmes to increase the volumes of cleaner recyclables. Increased supplies of recyclables should, however, be accompanied by an increase in the demand for products made from recyclables, to absorb the increased supply.

PENGARUH MODAL DAN LAMA USAHA TERHADAP PENDAPATAN PEDAGANG DI PASAR TRADISIONAL PASAR MINGGU

Indonesia memiliki tingkat pertumbuhan relatif tinggi, jumlah penduduk yang besar, kemiskinan, struktur umur yang muda, dan penyebaran penduduk yang tidak merata. jumlah penduduk yang besar merupakan modal dasar dalam mencapai tujuan pembangunan nasional,jika pengelolaan yang tidak tepat akan menimbulkan masalah di bidang ketenagakerjaan. Tingkat penganguran yang tinggi berdampak pada sektor informal yang dapat mengatasi permasalahan tersebut. Kegiatan sektor informal biasanya terjadi di kawasan yang sangat padat penduduknya yang terpusat di daerah perkotaan. Kurang pendidikan formal, tidak terlatih dan kurangnya akses modal, mengakibat pendapatan rendah pada sektor formal. penelitian ini bertujuan untuk mengetahui faktor- faktor yang mempengaruhi pendapatan penjual yang memiliki pengaruh dominan terhadap pendapatan. Penelitian ini menggunakan data primer yang diambil dari 50 responden dengan metode sensus dan dianalisis menggunakan regresi linier berganda. Hasil penelitian menunjukkan pengalaman bisnis dan modal sangat mempengaruhi pendapatan penjual. Penelitian ini juga menunjukkan bahwa pengalaman bisnis merupakan faktor yang paling berpengaruh terhadap pendapatan para penjual dibandingkan dengan faktor-faktor lain. Untuk meningkatkan pendapatan para penjual tradisional diperlukan strategi bisnis yang tepat dengan diberikannya pelatihan, pembinaan dan konseling sehingga penjual tradisional dapat memberikan layanan yang sangat baik kepada pembeli.

Characteristics of informal sector activities and challenges faced by women in Kumasi Metropolis, Ghana

Informal sector (IFS) activities are viable in reducing poverty among women. Yet, the full potential of IFS in reducing poverty among women may not be realised when women encounter challenges which could retard the attainment of United Nations poverty-related Sustainable Development targets. In Ghana, there is a paucity of studies regarding constraints faced by women in the IFS. The purpose of this study was to explore challenges faced by women in the IFS in Kumasi Metropolis of Ghana to inform policy direction. A sample of 356 women recruited through simple random sampling technique was involved in a cross sectional survey. The study found that 30.9% faced a myriad of challenges comprising inadequate customers, non-payment of debts, high taxes and license fees, unavailability of finance, lack of space, lack of capital equipment and difficulties with existing regulations. The study revealed a significant association between age and challenges with IFS activities. The study established a statistically significant difference between spatial location and challenges faced by women in the IFS activity. Policy recommendations that seek to counter these barriers have been offered for implementation.

Constraints to growth in informal sector activities and formalisation: A case study of Ghanaian slums

Background: Globally, people often migrate from rural to urban areas in search of employment. Lack of adequate employment opportunities in cities forced individuals to engage in slum informal economic activities out of necessity.Aim: The informal sector presently employed about 86% of labour in Ghana, contributing 42% to its gross domestic product (GDP). Various constraints held back the development of slum informal activities. Formalising the informal sector is advocated as a step to generate employment. This article investigated the dynamics of informal sector activities and formalisation among slum operators in Ghana, based on a survey in two major cities there.Setting: This article investigated the constraints that hinder the development of slum activities in Accra and Kumasi, two cities in Ghana, and examined the informal operators’ subjective well-being and their willingness to graduate to the formal sector, should the constraints be addressed.Methods: Data were collected by means of a questionnaire, administered to a random sample of 342 informal slum operators. Enterprise constraints are examined by using the principal component analysis (PCA) method and the likelihood of the informal operators’ graduating to the formal sector by using logistic regression.Results: The PCA identified six clusters as limitations, explaining about 77% of the variation in constraints. These related to a lack of business knowledge, credit access, tools and materials, security and social networking. The logistic regression results reflect that, of all the constraints, it is only when access to capital is addressed, that slum operators will move into formal activities.Conclusion: When people are happy in what they are doing, they are reluctant to move to the formal sector, despite incentives or interventions that address their enterprise constraints. Hence, slum operators and informal activities are unlikely to disappear. Nevertheless, policy-makers have to devise appropriate financing strategies for slum operators to help in their formalisation and growth pathways.

Measuring innovation in the informal economy – formulating an agenda for Africa

PurposeThe purpose of this paper is to review options for measuring innovation in the informal sector and proposes an agenda for future work.Design/methodology/approachIt starts with a review of surveys of innovation in the formal business sector, and related definitions, as sources of questions and definitions which could be applied to the informal sector. Then, labor force surveys, and those that are combined with establishment surveys to measure informal sector activities, are examined with a view to adding questions, or modules, on the measurement of innovation in the informal sector. In addition, the advantages of using semi-structured interviews and ad hoc questionnaires in specific sub-sectors of the informal sector are explored.FindingsThe discussion leads to a possible agenda for future work on the development of policy relevant indicators of innovation in the informal economy. Two viable scenarios emerge: first, adding innovation questions to existing large-scale surveys of the informal economy; and/or second, conducting ad hoc questionnaire- and interview-based sectoral studies in selected countries.Research limitations/implicationsThe proposed course of actions suffers from a few shortcomings: first, amending existing surveys as proposed here is always a challenging undertaking. A new survey questions have to be tested (cognitive and other testing); their deployment also depends on the willingness of countries to include new questions. Second, surveying the informal economy and applying proper sampling will remain an issue, no matter how good the survey design, and not matter how sincere the effort. Third, and finally, conducting these new survey techniques will require substantial resources over time.Practical implicationsIn the coming years, new efforts are planned to gather data and better measure innovation in developing countries, such as the third edition of the African Innovation Outlook. This will widen the scope of reporting and analysis to include coverage of innovations in the informal sector (AU-NEPAD 2014). The suggestions in this chapter are intended to lay important groundwork for future empirical work, to help develop appropriate indicators and support new approaches to innovation policy in developing countries. Pragmatic suggestions are formulated, pointing to potential opportunities and challenges.Social implicationsThe informal economy is a hugely important contributor to economic growth and social well-being in Africa and other developing countries. Better measurement and contributing to a better understanding of innovation in the informal economy will be important progress.Originality/valueThe contribution of the paper lies in the novel combination of tested approaches in informal sector surveys, on the one hand, and innovation surveys in the formal sector, on the other hand. The approaches provide ways forward to gain better understanding of the innovation in the informal economy, and to support innovation policy in African countries and beyond.

Characteristics, Challenges and Prospects of Informal Land Use Activities in Barkin Ladi Town, Nigeria

<p><em>This paper examines the urban planning implications of informal sector activities in Barkin-Ladi Town, a post mining settlement in Plateau State, Nigeria. The objective of the paper is to examine the planning challenges posed by the informal sector activities and to make appropriate recommendations towards integrating and regulating such activities within the settlement. A total of 187 questionnaires were administered on three categories of informal sector activities in the area, while interviews were conducted with the staff of the Area Office of the Ministry of Lands, Survey and Town Planning and of the Works Department of the Barkin Ladi local government council, which is the planning authority. The research revealed that trading was the dominant informal activity being undertaken by 63% of the respondents, followed by cottage industries (14%) and tertiary services (23%). Planning challenges pose by informal activities included: change of use without planning approvals, encroachment on access roads, conflicting land uses, non-compliance with the relevant planning law on zoning. There were no spatial developmental plans or guidelines by the relevant planning authority to regulate the activities of informal sector activities. Environmental management challenges were lack of access to basic infrastructure, degradation of the urban environment, and insecurity of life and property. It is recommended that there is the need for planners to understand the valuable contributions of the informal activities to the local economy by integrating them in the spatial development frameworks through appropriate zoning, location, space management and regulatory policies. Basic infrastructure and services should be provided to enhance their productivity, while government and other stakeholders should improve access to loans, micro-finance, material resources and capacity building of informal participants.</em></p>

A Discrete Choice Experiment to Elicit the Willingness to Pay for Health Insurance by the Informal Sector Workers in Sierra Leone

The current health care financing system in Sierra Leone is unsustainable and poses challenges ranging from increased in out of pocket health care expenditure to accessibility problems, particularly in rural areas where living standards are low and health care facilities are scarce. This paper investigates whether privately financed health Insurance can improve the accessibility to formal health care in Sierra Leone and mitigate the effects of OOPs on poor households. To do so, we estimate the Willingness To Pay (WTP) for health insurance among informal sector workers in Sierra Leone using a Discrete Choice Experiment approach. Eight informal sector activities were selected namely – petty trading, subsistence farming, commercial bike riding, cattle rearing, fishing, tailoring, mining and quarrying. A random effect logit model is used to estimate households’ WTP for an improvement in coverage, choice of health care provider and a reduction in waiting time. Our study reveals that households were WTP more to have better attributes (better coverage, less waiting time) and to go to a faith - based provider. Our findings also suggest that location – rural versus urban – matters in determining the WTP since urban households were WTP more for health insurance than their rural counterparts, (SLL 54,348 or $7.34) and (SLL 37,250.5 or $5.03), respectively.

Incomes Disparity along Gender Lines: The Plight of Women in the Informal Sector

ABSTRACTThe contributions to development of informal sector activities have received mixed views both in literature and in various policy discourses. This paper examined the gender dimension of incomes in the informal sector, focusing on individuals who were involved in buying and selling across national borders, referred to as Informal Cross Border Traders (ICBT). From a comparative gender perspective, focus was on whether the stated activities were raising incomes of those participating above the poverty datum line. Poverty reduction was considered to have occurred when the informal sector activities had improved their incomes. Surveys were conducted using the questionnaire to collect primary data. Secondary information was obtained from documentary searches at institutions and the internet. While the paper showed that ICBT improved incomes of participants, however men financially benefited more than women. Thus, the analysis revealed a gender bias in favour of men, which needs to be recognised by devel...

Measuring Trends in Urban Inequality and Poverty in the Copperbelt, Zambia

This article is a discussion of how to measure urban inequality using the results of large household samples. It has two aims. The first is to de-mystify the methods of measuring earnings inequality by discussing their logic and their results in plain language that is suitable for a non-specialist audience. The second is to persuade the reader that such surveys can be suitable for measuring income derived from all kinds of livelihood strategies, including informal sector activities. The results show persistently high levels of inequality over time among income earners on the Copperbelt. Disaggregation of the employed workforce by major occupational groups reveals increasingly more elementary and middle-income workers than higher income managers, professionals, and technicians. This pattern differs by gender, however, with only women experiencing a marked increase in low-skill, low-wage employment.

Informality and Economic Growth in Nigeria: 1980-2014

<p><em>The paper examines the impact of informal sector activities on economic growth in Nigeria between 1980-2014. The contributions of informal sector activities to the growth of Nigerian economy cannot be over emphasized. It is the source of livelihood to the majority of poor, unskilled, socially marginalized and female population and is the vital means of survival for the people in the country lacking proper safety nets and unemployment insurance especially those lacking skills from formal sector jobs. The relationship between informality and economic growth is not clear because the sector is not regulated by the law also there is no concrete evidence that this sector enhances growth because the sector’s contributions to growth is not measured. The use of endogenous growth model becomes relevant in this study. The theory emphasizes the role of production on the long-run via a higher rate of technological innovation. The variables that were tested are official economy nominal GDP, informal economy nominal GDP, currency in circulation, demand deposit, ratio of currency in circulation to demand deposit, narrow money, informal economy as percentage of official economy. ADF test was conducted to establish that the data series of all variables are stationary t levels. Having established the stationarity test we also, conducted causality test of the response of official economy nominal GDP to informal economy nominal GDP. In conclusion, the impact of informal sector economy on economic growth in Nigeria is quiet commendable. Even though, the relationship between informality and economic growth is not straight. The paper recommended thus, the need for the government to integrate the activities of the informal economy into formal sector and size of the sector is measured and regulated because their roles are commendable. As it will improve tax collection and enhance fiscal policy.</em></p>

Analysis of the Relationship between Informal Financial Institutions and Poverty Alleviation in Nigeria: A Multivariate Panel Data Approach.

The concept of Economic growth can be accompanied by an increase in informal employment. Informality may support growth by reducing labor cost and improving competitiveness. However, a well-functioning and regulated informal economy will be a critical prerequisite to achieve sustainable growth. And also, a widespread informality with regard to employment, enterprise and productive activities is frequently perceived as a barrier to full participation in the economy and as a hindrance to long-run economic development and poverty alleviation. This is because the link between, informality, poverty alleviation and growth is not fully understood. This paper seeks to investigate the Relationship between informal financial sector activities and poverty alleviation in Nigeria. A multivariate panel data approach was used with data from 150 informal sector operators in Gwagwalada area council-FCT. Data was collected using structured questionnaire and analyzed with appropriate technique in order to identify the perception of socio-economic impact of Informal sectors on poverty alleviation in Nigeria. The findings revealed that informal financial sector operators has a positive and significant impact on poverty alleviation in Nigeria; while poverty-mentality, illiteracy, high inflation, low infrastructure, access to credit, social safety nets and information dissemination are the major problems encountered by these institutions. The paper recommends among other things the education of the rural poor to embark on viable projects, infrastructural development and favorable government policies so as to make the sector becomes relevant.

The proliferation of informal sector activities in Congo: Case of the city of Brazzaville

The underground of the countries of Africa south of the Sahara is full of enormous potentialities and raw materials of all kinds. But the population of Africa in general and of Africa south of the Sahara, in particular, remains the poorest in the world. A contrast which can be justified by the political and economic instability, the corollary of which is poor management, the drop in the standard of living. The economic potential of these countries does not reflect the level of populations that generally languish in enormous poverty without real livelihoods. Beginning in the 1980s, a large-scale economic crisis shook virtually all African countries because of the stringent restrictions and measures imposed by the Bretton Woods institutions, notably the International Monetary Fund and the World Bank. In order to cope with the increasingly difficult living conditions, the populations of which were the main victims, that is to say, the populations will gradually organize themselves and several activities will emerge. These activities are part of the informal sector. It is, therefore, a sector that brings together unemployed people looking for employment and societal well-being who organize themselves to face everyday problems. This means that it is a lucrative sector that is constantly absorbing unemployment in Congo in general and Brazzaville in particular.

Bakul: Contribution of Rural Women to Family Economy through Informal Sector Activities

Economic contribution of bakul women (small tradeswomen) was manifested in informal sector activities such as merchants, laborers, homeworkers, and family workers. Rural society activities indicated cooperation between men and women. One job conducted by women in informal sector was bakul. The work is a progress for women regarding work division; however, it is also a challenge, especially for children education in the family. Research location was in Gunungpati Subdistrict, Semarang City. The research was conducted using qualitative approach. Research result shows that bakul women worked in informal sector to fulfill economic need of the family because the income from their husband was insufficient to fulfill daily needs thus they tried to look for additional income. Various types of empowerment for bakul women had been conducted either from the internal of bakul itself or from external. Through the empowerment, they were able to fulfill their daily needs such as to buy clothes, to send their children to school, to buy rice and side dishes, and even to give donation for the provision of basic needs.

Resilience to Economic Shocks: Reflections from Zambia's Copperbelt

AbstractThe Copperbelt region in Zambia experienced significant economic destabilization after the 1970s which led to massive job losses in the mining and manufacturing sectors, forcing the local population into a range of informal sector activities and food self‐provisioning. Resilience thinking and the concepts of adaptation and adaptability in particular provide a lense through which to understand how the mining industry was re‐established, albeit in a radical altered form and how local individuals and households have had to cope through creative local responses. The practice of urban agriculture serves as a case‐study of how, in the absence of formal sector employment opportunities, households have had to strengthen their food security through their own actions.

Condiciones de Vida de la Población Inmigrante del Distrito Central, Honduras, año 2013

Este artículo se basa en un estudio donde se busca conocer las condiciones de vida de la población inmigrante al Distrito Central ya que la migración interna es un fenómeno que históricamente está asociado con los procesos de desarrollo, las crisis políticas, la industrialización, la urbanización y el mejoramiento en las condiciones de vida de la población. La migración al Distrito Central en los últimos años se ha incrementado. El desplazamiento poblacional ha generado en alguna medida cambios en el espacio geográfico, así como en el modo de vida de los inmigrantes. Las características sociodemográficas más relevantes de los inmigrantes en el Distrito Central son: predomina la procedencia rural mayoritariamente de los municipios de Francisco Morazán y los departamentos de Choluteca y El Paraíso, tienen baja escolaridad, un 52% está en condiciones de pobreza, tienen bajos ingresos económicos; en su mayoría son parte de la PEA insertadas en actividades de sector informal, los servicios y la industria manufacturera y en el caso de las mujeres estas se encuentran en edad reproductiva que impacta los niveles de fecundidad en el Distrito Central.Revista Población y Desarrollo: Argonautas y Caminantes Vol.12, 2016: 81-92

The Contribution of Employment Vulnerability in Explaining Private Sector Inequality in Cameroon

This paper identified the role of employment vulnerability and other regressed-income sources in accounting for private sector inequality and examined how much inequality in income and vulnerability is accounted for by within- and between-employment sector components in Cameroon. The paper employed two decomposition approaches: a regression-based framework and a Shapley Value-based rule. To attain these objectives, use was made of the 2007 Cameroon household consumption survey conducted by the government?s statistics office. Employment vulnerability accounted for about 4.1 percent to the national private sector income inequality of 0.38, meanwhile, labour market experience, years of schooling, infant dependency and urban residency accounted for about 6.4, 10.3, 7.0 and 14.2 percent, respectively. Results also showed that the within-group components overly accounted for the national private sector income Gini inequality. Whereas, over 87 percentage points of the within-sector inequality component of 92.5 percent was accounted for by the informal sector, inequality between the formal and informal sectors of employment was only 7.5 percent. These findings highlighted the heterogeneity of informal sector activities and the wisdom of designing policies that can entice transition from informality to formal sector activities.