Determinants of labor participation in the informal sector in Kenya

Abstract

The informal sector is a major employer of many Kenyans and should thus he considered capable making important contributions to the national economy. Thus the informal sector should he designated as a development priority in Kenya to enable maximization of opportunities for all who work within the sector. This study was aimed at identifying and analyzing the determinants or informal sector participation in Kenya, The study applied logit regression model to estimate predictors or informal sector participation in The results indicated that the independent variables selected for the study were all statistically significant determinants of informal sector participation in Kenya. Mean household income and sexes or participants were round to have a negative relationship to informal sector participation, Marital status, education level, vocational qualifications. locations and ages of participants showed evidence of a positive relationship ,informal sector participation. The study concluded that Kenya, socio-economic characteristics of labor market participants continue to impact informal sector participation in significant and important ways.