DETERMINANTS OF THE INFORMAL SECTOR PARTICIPATION: A CASE OF GLENVIEW SUBURB, HARARE METROPOLITAN PROVINCE, ZIMBABWE.
Date
2020-06-22
Authors
BHANYA, TARIRO COLLINS
Journal Title
Journal ISSN
Volume Title
Publisher
University of Zimbabwe
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.