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Modelling Poverty Dimensions of Urban Informal Sector Operators in a Developing Economy

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Author Info
Mahendra Reddy
Abstract

Rising poverty is a cause of concern for international, regional and local organisations and policy makers. A contributing factor is urbanisation and growth in the urban informal economy which has both beneficial and detrimental effects on the urban formal economy. This study utilises primary data from two cities and a town to examine the contribution of the urban informal sector to employment creation and poverty alleviation. The findings reveal a significant positive contribution of the informal sector towards poverty alleviation and income generation. Les organisations locales, régionales et internationales ainsi que les décideurs politiques sont inquiets face à la montée rapide de la pauvreté. L'expansion du secteur urbain informel qui résulte du processus d'urbanisation a également contribué à l'accroissement de la pauvreté urbaine. La croissance de l'économie urbaine informelle a des conséquences à la fois positives et négatives sur l'économie urbaine formelle. Cette étude se base sur les données primaires de deux grandes villes et d'une ville moins importante pour analyser le rôle du secteur urbain informel dans la création d'emploi et l'atténuation de la pauvreté. Les conclusions montrent que le secteur informel contribue de façon importante à la réduction de la pauvreté et à la génération de revenus.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal The European Journal of Development Research.

Volume (Year): 19 (2007)
Issue (Month): 3 ()
Pages: 459-479
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Handle: RePEc:taf:eurjdr:v:19:y:2007:i:3:p:459-479

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