The Role of Informal Sector on Household Livelihood: Survey of Street Vendors in Mekelle City

Abstract

Informalization of work arrangement is powerful global economic force that affects billions of people, especially in poor countries which its presence is overwhelmingly obvious in many cities of Africa or South Asia where millions of people, caught in vicious circles of poverty and powerlessness, struggle to survive, hawking single cigarettes, cheap watches or small food items etc. therefore, the study entitled “the role of informal sector on household livelihood :survey of street vendors in Mekelle city” circulates around the key issue of informal sector and livelihood. To scrutinize the role of the sector in the city, the study used 150 randomly selected sample street vendors from three market centers. In order together the necessary data from the sample street vendors, questionnaire and interview were used as research instrument tools. In light of this, descriptive statistics was employed to analyze the data obtained through questionnaire. The study finding indicates that street vending is crucial armed force in fighting and reducing the extent and intensity of poverty in general. Besides, the vendors’ livelihood assets were improved significantly. More specifically, the income welfare and saving of those who joined street vending has increased by 166% and 202% from their prior income and saving respectively. Moreover, the paper suggests further research area in the topic by believing that the study is not alpha and omega in the area.