The Effects of Urban Livelihood Strategies on the Income of Rural-Urban Migrants in Kolfe-keraniyo Sub city of Addis Ababa

Abstract

The objective of this study is to identify the factors associated with the choice of urban livelihood strategies on the income of rural-urban migrants working in Kolfe-Keranio sub-city of Addis Ababa city administration. The study objective designed based on the research gap on the effects of the type of livelihood strategies adopted by these migrants on their income. To achieve this desired objective, the study used Taro Yamane statistical formula to determine the sample size of 400 households from the four sample woredas from whom raw data is collected by using structured questionnaires. The study employed multinomial logistic regression model and descriptive statistics to analyze the collected raw data. The descriptive statistical analysis results indicate that the most common livelihood strategy adopted by rural urban migrant in the sub city are self-employment, wage employment and casual laboring and the major determinants of the choice of livelihood strategies are the need of being educated, the ability to generate income, area of profession, startup capital, and working space respectively. The multinomial logistic regression analysis results indicate that the probability of income increase for self-employed migrants is 0.97 while its probability to remain the same is 0.03. The probability of income increase for wage-employed migrants is 0.6 while its probability to remain the same is 0.04. The probability of income increase for wage-employed migrants is 0.6 while its probability to remain the same is 0.04. The probability of income increase for daily laborer migrants is 0.05% while its probability to remain the same is 99.5%. The probability of income increase for self employed migrants is 0.72 while its probability to remain the same is 0.28. The probability of income decrease for wage-employed migrants is 0.76 while its probability to remain the same is 0.24. The probability of their income to decrease for daily laborer migrants is 0.05% while the probability of their income to remain the same is 99.5%. The multinomial logit model results indicate that self-employment has statistically the most significant positive effect on the income of rural urban migrants in the study area while age of the respondent has statistically insignificant effect. Wage employment has also significant effect on the income of rural urban migrants in the study area. Thus, the policy makers of the city administration advised to consider policy options that enhance self-employment and expansion of vocational skill trainings for the migrants.