Jenberu, Amene Afework, and Getaye Mulugeta Kasse. 2021. ‘Deriving Forces and Socioeconomic Status of Women in the Urban Informal Sector in Bichena Town, West-Central Ethiopia’. Journal of Social and Economic Development 23 (2): 258–282.
The writer commenced his writing by explaining how the informal sector is becoming a global phenomenon and expanding in developing countries. According to this study in Ethiopia women account for more than a half of the total population and when it comes to rate of employment, they are underrepresented in the formal employment sector and to the contrary overwhelmed in the informal sector which is vulnerable, homebased and informal by its nature.
The study indicated that the growing rate of urbanization in Ethiopia comes up with a high rate of unemployment. Joblessness in return prompts a high rate of engagement in the informal sector as the last resort of earning means of life. High rate of women engagement in the informal sector is the contribution of various factors including illiteracy, low income, lack of employment in the formal sector, lack of social support and low decision-making roles assumed by women.
The study indicated that the informal sector is playing a great role in addressing challenges posed by rapid urbanization and mismatch of the formal labor market. Informal sector is playing an indispensable role by facilitating employment opportunity, productivity, reducing social burdens, and serving as facilitator of women economic empowerment.
The researcher used a mixed research approach of both qualitative and quantitative methods. To select study participants, the researcher had used purposive sampling using market area and type of product as selection criteria, accordingly 245 women were selected and participated in the research. Regarding data analysis, the researcher used the concurrent triangulation strategy of MRD.
Among the various driving forces towards the informal sector, lack of skill and formal education is the primary one. The study indicated that to enter the formal labor market one needed to have a certificate of education and training in most cases. However, the majority of the women coming from the countryside don’t have the required educational completion certificate and as a result opt for the informal sector. The writer noted that dissolution of marriage either through divorce or death of the spouse is the main factor that drives women to the informal sector. Once they are divorced and assume the leadership role of their household, they start to look for available means of income, and the informal sector is the primary area to look for. Married women also enter into the informal sector to support their husband as income from one side is not usually sufficient to afford all the household demands.
The author also indicated that flexibility of the informal sector is one of the various reasons that attract women to the informal sector. According to this study, it’s evident that women in Ethiopia assume various socio-economic burdens starting from family care to social duties. Accordingly, the informal sector enables them to accomplish multifaceted tasks side by side. Moreover, easy entry and exit, low startup capital requirement and narrow investment is one of the factors that attract many women into the informal sector. However, the sector is susceptible to various challenges including lack of access to credit, workplace security and protection from the government.