Motivations and livelihood dynamics in the urban informal economy: the case of Dire Dawa City, Eastern Ethiopia

Abstract

This article assesses the motivations for participation in the informal economy in general and street vending in particular and explores vendors’ livelihood dynamics in Dire Dawa city, Eastern Ethiopia. Data were collected from fixed and itinerant vendors who were found vending a variety of goods and services in the city during data collection. A descriptive survey design was employed in this study. Time location sampling procedure – a new method of two-stage sampling that has been widely used to select the hard-to-reach segment of society – was employed to select 198 street vendors. Data were collected using a questionnaire survey, in-depth interviews and observation during 2016/17. The study revealed that the majority of vendors report that they engaged in street vending for survival. But some consider it is an opportunity for income, employment and growth, and livelihood improvement in the city. The majority of vendors indicated that there have been improvements in their lives since they started vending. Thus, this study points to the need to employ multiple perspectives to capture the reality underneath livelihoods in the informal economy. Policy approaches that recognise the vitality of public spaces for street vending activities, the integrality of vendors to the socio-economic fabric of the city, and their modest contributions to the socio-economic development of the city are necessary.

Retailer-reseller embeddedness and price-setting in the informal economy

“…These are economies comprising groups governed by socially shared and unwritten rules and who function outside of officially regulated channels (Helmke and Levitsky, 2004). Evidence has confirmed the prevalence of informality in the individual (Chen and Chen, 2020;Dube, 2021), organizational (Ibidunni et al, 2020;Abi Aad and Combs, 2021) and societal levels (Khuong et al, 2021;Elbahnasawy, 2021). In addition, scholars have noted that informality is a phenomenon that is pervasive in the economies of both African and non-African countries (Uzo et al, 2021;Meagher, 2010;Uruthirapathy and Kiggundu, 2018).…”