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Determinants Of Earnings Among Commercial Tricycle Operators In Ilorin Metropolis, Nigeria

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In 1999, Nigerian government of Olusegun Obasanjo launched series of empowerment schemes to alleviate poverty. Among these is tricycle empowerment. Till date, tricycle is used for commercial transport in Nigeria. This study examines the determinants of earnings among commercial tricycle operators in Ilorin metropolis, Nigeria. 335 commercial tricycle operators were interviewed via structured questionnaire, using stratified-simple random sample method. 321 questionnaires were returned valid. The study covers 15 major tricycle parks in Ilorin metropolis. This study is rooted on Minority Group Theory and Human Capital Theory. It is analyzed using logistic binary logit and stepwise regression technique. The results show that ownership of tricycle, passengers-carried per day, and membership to tricycle union are core determinants of daily earnings. And that a unionist is better off than non-unionist. Operator who owns a tricycle is also better off than one who lives on a rented tricycle. The core challenges of operators are: high daily fee charges by union, high price of tricycle, seasonal demand for tricycle service in routes that link schools, and undignified approach of passengers. The study recommends that government should subsidize the cost of tricycle on monthly installments through registered tricycle unions, and that government should also regulate daily charges by unions.

Suggested Citation

  • Idowu Obakemi, Funsho, 2021. "Determinants Of Earnings Among Commercial Tricycle Operators In Ilorin Metropolis, Nigeria," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 8(1), pages 101-112, June.
    • Handle: RePEc:ris:ilojep:0043
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    References listed on IDEAS

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    1. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    2. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, July.
    3. Gary S. Becker, 1964. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, First Edition," NBER Books, National Bureau of Economic Research, Inc, number beck-5, July.
    4. Cervero, Robert & Golub, Aaron, 2007. "Informal transport: A global perspective," Transport Policy, Elsevier, vol. 14(6), pages 445-457, November.
    5. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    Earnings; Tricycle operators; Minority group theory; Stepwise regression;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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