DETERMINANTS OF THE INFORMAL SECTOR PARTICIPATION: A CASE OF GLENVIEW SUBURB, HARARE METROPOLITAN PROVINCE, ZIMBABWE

Tariro Collins Bhanya

Working Papers from African Economic Research Consortium

Abstract: The objective of this study is to identify the determinants of the informal sector participation in Zimbabwe using Glenview Suburb, Harare as a case study. Cross-sectional primary data is collected from 379 household heads proportionally distributed basing on number of households in each ward. Households heads in each ward are randomly selected. The logistic regression model is used to analyse the factors determining participation in the informal sector. 73.09 percent of the respondents are found to be participating in the informal sector. From the regression results, the coefficients of gender, household income, household size, formal sector employment history (retrenched and never employed), linkages, taxation and government regulations are the significant. However, coefficients of age of the household head, marital status of the household head, education level of the household head, vocational training of the household head, formal sector employment status of the household head (retired) are the insignificant variables. It is recommended that government should implement policies directed at stimulating male participation in the informal sector. In addition, the government should strengthen its social welfare and income redistribution and equality policies. Moreover, to cut household head burden, it is recommended to use health policies (such as birth controls) to control fertility. On the other hand government was recommended to revisit its legislation and policies to make sure that they are friendly to the formal business environment. After policy recommendation, suggestions for further studies are made.

Date: 2020-06-22
Note: African Economic Research Consortium
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