Employment Generation and Earnings in the Informal Transport Sector in Nigeria

Godwin Tunde Arosanyin, Adekunle Taiwo Olowosulu, Gafar Matanmi Oyeyemi

Abstract


Abstract: Unemployment and poverty are two of the challenges facing the Nigerian economy. Most urban semi and unskilled labour have found solace in the informal sector particularly informal transport. This paper examines employment generation and determinants of earnings in the informal transport sector in Nigeria using a case study. An adapted Mincerian equation and logistic models were used as tools of analysis.
It was found that the informal sector is a source of employment for 21.7 per cent of jobless people; and 72.3 per cent of those who switched jobs from an informal activity to transport business. Household size, experience and operating hours were found to be significant determinants of earnings. The probability that a motorcyclist would earn at least the informal average in the Okada business when the operator has a driver license, owns the motorcycle, works on full time basis and also a member of the okada union is 0.8018, which is higher than that of an operator with the reverse attributes at 0.2849. The probability of earning at least the industry average by an educated operator was found to be higher than less educated operators. Employment and earnings can be improved upon in this sector if the government regulates its operations and segregate traffic.
Key words: Transport; Informal; Employment; Earnings; Education

Keywords


Transport; Informal; Employment; Earnings; Education

Full Text:

PDF

References


Adesanya, A. (1998). The Use of Motorcycles for Public Transport: The Situation in Ibadan. NISER Monograph Series N0. 6. Ibadan: Nigerian Institute of Social and Economic Research (NISER).

Adeyemo, M.A. (1998). An Appraisal of Motorcycle as a Commercial Passenger Transport Mode in Port Harcourt Metropolis. Journal of Transport Studies, 2(1), 77-89.

Arosanyin, G. T. (2010). Determinants of Earnings from Commercial Motorcycle Operation in Ilorin, Nigeria. Ghana Journal of Development Studies, Forthcoming.

Arosanyin, G.T. (2011, March). Can Nigeria Survive without Oil? Paper presented at the 2011 Annual General Meeting of the Association of National Accountants of Nigeria, Ilorin, Nigeria.

Arosanyin, G. T. & Ipingbemi, O. (2007). Car Wash Service in Nigeria Road Transport System; Evidence from Ilorin. The Nigerian Journal of Economic and Social Studies, 49(1), 45-64.

Becker, S. G. (1964). Human Capital: A Theoretical and Empirical Analysis with special Reference to Education (3rd ed.). Chicago: University of Chicago Press.

Cervero, R. (1998). Para Transit: the Gap Filler. Habitat Debate 4(2), 8-9.

Cervero, R.(2000). Informal Transport in the Developing World. Nairobi: United Nations Centre for Human Settlement (Habitat).

Chiswick, B. R. (1997). Interpreting the Coefficient of Schooling in Human Capital Earnings Function. Washington DC: World Bank.

Federal Republic of Nigeria (FRN). (1999). Annual Abstract of Statistics. Abuja: Federal Office of Statistics.

Federal Republic of Nigeria (FRN). (2007). Facts and figures about Nigeria. Abuja: NBS.

Federal Republic of Nigeria (FRN). (2008). Annual Abstract of Statistics. Abuja: NBS.

Gujarati, N. D. (2005). Basic econometrics (Ch.15). New Delhi: Tata McGraw-Hill Publishing.

Maddala, G. S. (1983). Limited-Dependent and Qualitative Variables in Econometrics. Cambridge: Cambridge University Press.

Mincer, J. (1958). Investment in Human Capital and Personal Income Distribution. Journal of Political Economy, 66, 281 – 302.

Mincer, J. (1974). Schooling, Experience and Earnings. New York: Columbia University Press.

National Bureau of Statistics. (2009). Labour Force Survey March, 2009. Abuja: National Bureau of Statistics.

OECD. (1998). Human Capital Investment: An International Comparison. Paris: OECD.

Ogunsanya, A.A. & Galtima, M. (1993). Motorcycle in Public Passenger Transport Service in Nigeria: Case Study of Yola Town. In S.G. Ikya (ed), Urban Passenger Transportation in Nigeria (pp.190-207). Ibadan: Heinemann Educational Books.

Ojekunle, J.A. (1998). Operations and Use of Motorcycles as a Mode of Public passenger Transport. In Dange, H., Chikolo, I.V. and Ogunsanya, A.A. eds. Issues in Transport Planning and Management (pp.84-103). Zaria: Nigerian Institute of Transport Technology.

Ram, R. (1996). Level of Development and Rates of Return to Schooling: Some Estimates from Multi Country Data. Economic Development and Cultural Change, 44(4), 839–857.

Rama, M. (2002). The Gender Implications of Public Sector Downsizing: The Reform Program of Vietnam. The World Bank Research Observer, 17(2), 167-189.

Ricaurte, M. F. (2007). Human Capital and Earnings Department of Economics. University of Minnesota.

Rodgers, Y. (1999). Protecting Women and Promoting Equality in the Labour Market: Theory and Evidence. Policy Research Report on Gender and Development Working Paper 6. Washington DC.: The World Bank.

Scheider, F. (2002, July). Size and Measurement of the Informal Economy in 110 Countries around the World. Paper presented at a workshop of Australian National Tax Centre ANU Canberra, Australia.

Schultz, T. W. (1961). Investment in Human Capital. American Economic Review, 5, 1-17.

Stevens, M. (2000). Reconciling Theoretical and Empirical Human Capital Earnings Functions. Oxford: Nuffield College.

Suleiman, F and Paul Jean-Jacques. (2004, October). Rewarding Human Capital and Competences: An Analysis of the Banking Sector in Portugal. Paper presented at sociedade portuguesa de Investigacao em economica SPIE 8-9 October, 2004.




DOI: http://dx.doi.org/10.3968/j.ibm.1923842820110202.015

Refbacks

  • There are currently no refbacks.


Copyright (c)



Share us to:   

Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: [email protected]; [email protected]; [email protected]

 Articles published in International Business and Management are licensed under Creative Commons Attribution 4.0 (CC-BY).

 INTERNATIONAL BUSINESS AND MANAGEMENT Editorial office

Address: 1055 Rue Lucien-L'Allier, Unit #772, Montreal, QC H3G 3C4, Canada.
Telephone: 1-514-558 6138 
Website: Http://www.cscanada.net Http://www.cscanada.org 
E-mail: [email protected]

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures