Skip to main content

Advertisement

SpringerLink
Log in

Deriving forces and socioeconomic status of women in the urban informal sector in Bichena Town, West-Central Ethiopia

  • Research Paper
  • Published:
Journal of Social and Economic Development Aims and scope Submit manuscript

Abstract

Migration-driven population growth coupled with limited formal job supply in Bichena escalates unemployment and the numbers of informal business operators. The purpose of this study was to investigate the deriving factors and socioeconomic status of women informal business operators in Bichena town, west-central Ethiopia. Mixed research approaches were used to acquire and analyze data. Purposive and convenient sampling techniques were employed to select sample kebeles and 245 respondents, respectively. The study employed questionnaires, interviews, field observations, and document review to collect data. The data were analyzed quantitatively using SPSS and qualitatively. The study revealed lack of options for survival; divorce and/or widow; limited household income; easy entry requirements (education and finance); and flexibility of the business as prominent factors for women's engagement in the informal sector. The study also indicated that women informal workers largely operate small survival-based business with low profits. Consequently, more than half of the respondents obtained very low monthly income (≤ 29.5 USD) with no saving habit, and about one-third of them failed to cover their monthly expenses. The statistical analysis demonstrated that age, family size, type of informal business, and work experiences had a significant influence on respondents' monthly income. The income, expenditure, and saving conditions of respondents vary across the types of informal activities. The study further revealed that women informal workers in Bichena have low livelihood assets ownership except for social capital. The informal sector generally serves as a survival strategy for migrant and urban poor women; thus, the town administration should work hand-in-hand with other stakeholders to empower informal workers through designing appropriate policies/strategies.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2

Source: field survey

Fig. 3

Source: field survey

Fig. 4

Source: field survey

Fig. 5

Source: field survey

Fig. 6

Source: field survey

Similar content being viewed by others

Availability of data and material

The datasets used and/or analyzed in this study are found in the hands of the corresponding author.

Notes

  1. Ethiopian traditional fermented alcoholic drink made from grains, the leaves of gesho (buckthorn) and malt.

  2. A colorless distilled traditional alcoholic beverage prepared in Ethiopia from the same ingredients as tella.

  3. An administration unit holding kebeles in Ethiopian context.

  4. Smallest administrative units in Ethiopia.

  5. ETB denotes the Ethiopian Birr (currency), 1 USD ≈ 34 ETB during the study period.

References

  • AfDB, UNDP (2012) African economic outlook 2012: promoting youth employment. OECD Publishing. Accessed Jan 2018

  • Afework A (2011) Urban informal sector as a livelihood strategy of women: the case of ‘Tella’ and ‘Katicala’ Producers and Sellers in Dejen Town, East Gojjam Zone. Addis Ababa University, Amhara Regional State

    Google Scholar 

  • Alemu YT (2012) Challenges and Prospects of Women in the informal sector business in Addis Ababa: the Case of Merkato. MA thesis, aau

  • Becker KF (2004) The informal economy: fact finding study. Sida, Stockholm

    Google Scholar 

  • Belay G (2012) Determinants of microenterprise success in the urban informal sector of Addis Ababa: multidimensional Analysis.  Erasmus University Rotterd, Netherlands

  • Bewick V, Cheek L, Ball J (2004) Statistics review 9: one-way analysis of variance. Crit Care 8(2):130

    Article  Google Scholar 

  • Bodo T (2019) Rapid urbanisation: theories, causes, consequences and coping strategies. Ann Geogr Stud 2(3):32–45

    Google Scholar 

  • Bonnet F, Vanek J, Chen M (2019) Women and men in the informal economy: a statistical brief. International Labour Office, Geneva. http://www.wiego.org/sites/default/files/publications/files/Women%20and%20Men%20in%20the%20Informal,20.

  • Castells M, Portes A (1989) World underneath: the origins, dynamics, and effects of the informal economy. In: The informal economy: studies in advanced and less developed countries, vol 12

  • Central Statistical Agency (CSA) (1994) Population and housing census of the Federal Government of Ethiopia. Addis Ababa, CSA

  • Central Statistical Agency (CSA) (2000) Statistical report on the 1999 national labor force survey. Addis Ababa, CSA

  • Central Statistical Agency (CSA) (2003) Report on urban informal sector sample survey. Addis Ababa, CSA

  • Central Statistical Agency (CSA) (2007) The 2007 population and housing census of Ethiopia. Addis Ababa, CSA

  • Central Statistical Agency (CSA) (2011) Report on the 2011 national labor force survey. Addis Ababa, CSA

  • Chen MA (2001) Women and informality: a global picture, the global movement. SAIS Rev 21(1):71–82

    Article  Google Scholar 

  • Chen MA (2005) Rethinking the informal economy: linkages with the formal economy and the formal regulatory environment. WIDER research paper

  • Chen MA (2012) The informal economy: definitions, theories and policies. WIEGO working paper

  • Chen MA, Vanek J, Carr M (2004) Mainstreaming informal employment and gender in poverty reduction: A handbook for policy-makers and other stakeholders. Commonwealth secretariat

  • Chen M, Vanek J, Heintz J (2006) Informality, gender and poverty: a global picture. Economic and political weekly, 2131–2139

  • Cherinet H, Mulugeta E (2003) A profile on gender relations: towards gender equality in Ethiopia. Swedish International Development Cooperation Agency, Stockholm

    Google Scholar 

  • Cochran WG (1977) Sampling techniques, 3d edn. Wiley

    Google Scholar 

  • Creswell JW (2014) A concise introduction to mixed methods research. Sage Publications

    Google Scholar 

  • Creswell JW, Clark VLP (2017) Designing and conducting mixed methods research. Sage Publications

    Google Scholar 

  • Das S, Kotikula A (2019) Gender-based employment segregation: understanding causes and policy interventions. World Bank

    Book  Google Scholar 

  • Dea M (2016) The prospectus, challenges and causes of gender disparity and its implication for Ethiopia’s development: qualitative inquiry. J Educ Pract 7(4):24–37

    Google Scholar 

  • Deribie E (2012) Women in the informal sector: evidence from southwestern Ethiopia. Int J Peace Dev Stud 3(6):112–117

    Google Scholar 

  • Desta CG (2018) The urban informal economy in Ethiopia: Theory and empirical evidence. East Afr Soc Sci Res Rev 34(1):37–64

    Article  Google Scholar 

  • Desta M, Haddis G, Ataklt S (2006) Female-headed households and livelihood intervention in four selected weredas in Tigray, Ethiopia. Drylands Coordination Group, Miljøhuset G, 9

  • Elder S, Smith A (2010) Women in labour markets: measuring progress and identifying challenges. International Labour Office, Ginebra, Suiza

  • Elgin C, Oyvat C (2013) Lurking in the cities: urbanization and the informal economy. Struct Chang Econ Dyn 27:36–47

    Article  Google Scholar 

  • Fayomi OO, Adebayo TG, Okorie UE (2017) The resilient and informal economy and African development

  • Fields GS (2012) Challenges and policy lessons for the growth-employment-poverty nexus in developing countries. IZA J Labor Policy 1(1):1–24

    Article  Google Scholar 

  • Floro M, Meurs M (2009) Global trends in women’s access to “Decent Work” International Labour Organization. Geneva Office

    Google Scholar 

  • Gundogan N, Bicerli MK (2009) Urbanization and labor market informality in developing countries

  • Haregewoin C, Emebet M (2002) Gender Profile of Ethiopia. SIDA.

  • Hart K (1973) Informal income opportunities and urban employment in Ghana. J Mod Afr Stud 11(1):61–89

    Article  Google Scholar 

  • Hussmanns R, Mehran F (1999) Statistical definition of the informal sector-International standards and national practices. Paper presented at the the 52nd session of the International Statistical Institute.

  • ILO (2002) Women and men in the informal economy: a statistical picture. ILO, Geneva

    Google Scholar 

  • ILO (2016) Women at work: trends 2016. ILO, Geneva

    Google Scholar 

  • ILO (2017) World employment and social outlook: trends for women 2017. ILO, Geneva

    Google Scholar 

  • Jenberu AA, Admasu TG (2019) Urbanization and land use pattern in Arba Minch town, Ethiopia: driving forces and challenges. GeoJournal 85:1–18

    Google Scholar 

  • Kassa AF (2012) Unemployment in urban Ethiopia: Determinants and Impact on household welfare. Ethiop J Econ 21(2):127–157

    Google Scholar 

  • Ministry of Finance and Economic Development (MoFED) (2012) Ethiopia’s progress towards eradicating poverty: an interim report on poverty analysis study (2010/11). MoFED, Addis Ababa

  • Moore DS, Notz WI, Fligner MA (2015) The basic practice of statistics. Macmillan Higher Education

    Google Scholar 

  • Moser CO (1978) Informal sector or petty commodity production: dualism or dependence in urban development? World Dev 6(9–10):1041–1064

    Article  Google Scholar 

  • Ntseane PG (2019) The informal economy in developing societies: implications for the learning cities concept. In: Learning cities, town planning, and the creation of livelihoods, IGI Global, pp 94–107

  • OECD (2015) The metropolitan century: Understanding urbanisation and its consequences. OECD Publishing

  • Ortiz-Ospina E, Tzvetkova S, Roser M (2018) Women’s employment. In Our world in data

  • Otobe N (2014) Resource guide on gender issues in employment and labour market policies: working towards women’s economic empowerment and gender equality. ILO, Geneva

    Google Scholar 

  • Pallant J (2011) SPSS survival manual 4th edition: a step by step guide to data analysis using SPSS version 18. Open University Press, Maidenhead, Berkshire

    Google Scholar 

  • Park HM (2009) Comparing group means: t-tests and one-way ANOVA using Stata, SAS, R, and SPSS

  • Perry GE, Arias O, Fajnzylber P, Maloney WF, Mason A, Saavedra-Chanduvi J (2007) Informality: exit and exclusion. World Bank

    Book  Google Scholar 

  • Phan D, Coxhead I (2010) Inter-provincial migration and inequality during Vietnam’s transition. J Dev Econ 91(1):100–112

    Article  Google Scholar 

  • Reichlin L, Shaw E (2015) Gender, urbanisation and democratic governance: white paper written for the Institute for Women’s Policy Research

  • Seleshi S (2012) The Role of Informal Sector in Food Security: the Case of Addis Ababa. MA thesis, aau

  • Sethuraman S (1981) The urban Informal sector in developing countries: employment. Poverty and environment. ILO, world employment program

  • Shehu E, Nilsson B (2014) Informal employment among youth: evidence from 20 school-to-work transition surveys. ILO, Geneva

    Google Scholar 

  • Sibhat EE (2014) Cause and effect of informal sector: the case of street vendors in Addis Ababa. Addis Ababa University

    Google Scholar 

  • Tejani S, Milberg W (2016) Global defeminization? Industrial upgrading and manufacturing employment in developing countries. Fem Econ 22(2):24–54

    Article  Google Scholar 

  • Todaro MP (1997) Urbanization, unemployment and migration in Africa: theory and policy

  • Tokman VE (1979) An exploration into the nature of informal—formal sector relationships. In: The urban informal sector. Elsevier, pp 1065–1075

  • UNFPA (2007) State of world population 2007: unleashing the potential of urban growth. United Nations

  • UN-Habitat (2016) Urbanization and development: emerging futures; world cities report 2016. UN Habitat: Nairobi

  • UN (2019) World population prospects 2019: highlights. In: New York (US): United Nations Department for Economic and Social Affairs. Population Fund

  • USAID, MOH, UNFPA, and EHNRI (2012) Ethiopia demographic and health survey 2011. Central Statistical Agency Addis Ababa, ICF International Calverton, Maryland, USA

  • Vanek J, Chen M, Hussmanns R, Heintz J, Carré F (2012) Women and men in the informal economy: a statistical picture. ILO and WIEGO, Geneva

    Google Scholar 

  • Vanek J, Chen MA, Carré F, Heintz J, Hussmanns R (2014) Statistics on the informal economy: Definitions, regional estimates and challenges. In: Women informal employ glob organ work pap 2

  • Vijayvargiya A (2009) One-way analysis of variance. J Valid Technol 15(1):62–64

    Google Scholar 

  • Wamuthenya W (2009) Gender differences in the determinants of formal and informal sector employment in the urban areas of Kenya across time. https://editorialexpress.com/cgibin/conference/download.cgi?db_name=IAFFE2009&paper_id

  • Woldie SH (2015) Women in the informal sector: retrospect’s and socioeconomic response in Dessie town, Ethiopia: the case of parallel trading. Int J Dev Soc 4(2):85–94

    Google Scholar 

Download references

Acknowledgements

All participants during the household survey and key-informant interview are highly acknowledged for their time and willingness. The authors also would like to thank Bichena town administration, Small and Micro-Enterprise office, and Women, Children and Youth Affairs of the town for providing data during the fieldwork.

Funding

The authors received no funds for this research.

Author information

Authors and Affiliations

  1. Department of Geography and Environmental Studies, College of Social Science and Humanities, Injibara University, P.O. BOX: 40, Injibara, Ethiopia

    Amene Afework Jenberu

  2. Department of Civics and Ethical Studies, College of Social Science and Humanities, Injibara University, P.O. BOX: 40, Injibara, Ethiopia

    Getaye Mulugeta Kasse

Authors
  1. Amene Afework Jenberu
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Getaye Mulugeta Kasse
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Amene Afework Jenberu.

Ethics declarations

Conflict of interest

The authors declare that they have no conflict of interest.

Consent to participant

The authors collected the data from the study area with the approval of concerned stakeholders and participants' full consent.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Jenberu, A.A., Kasse, G.M. Deriving forces and socioeconomic status of women in the urban informal sector in Bichena Town, West-Central Ethiopia. J. Soc. Econ. Dev. 23, 258–282 (2021). https://doi.org/10.1007/s40847-021-00157-x

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s40847-021-00157-x

Keywords

Search

Navigation