Modelling poverty dimensions of urban informal sector operators in a developing economy

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.