viii

TABLE OF CONTENTS
Title i
Approval ii
Certification iii
Dedication iv
Acknowledgements v
Abstract vii
Table of Contents viii
List of Tables
CHAPTER ONE: INTRODUCTION
1.1 Backg
round to the Study 1

1.2 State

ment of Problem 3

1.3 Resea

rch Questions 3

1.4 Objec

tives of the Study 4

1.5 Signif

icance of the Study 4

1.6 Defini

tions of Terms 5
 viii

CHAPTER TWO: LITERATURE REVIEW

2.1 Revie
w of Theoretical Literature 6

2.1.1 Overview of Wage 6

2.1.2 History of Wage in Nigeria 7

2.1.3 Factors Responsible for Marginal Wage Earners 11

2.1.4 Sources of Monophony of Power and Wage Inequality 12

2.1.6 Effects of Marginal Wage Earners in Nigeria 13Impact of Minimum Wage on

Marginal Wage Earners 16

2.2 Empirical Review 19

2.3 Review of Related Theories 21

2.3 Theoretical Framework 23

2.5 Research Hypotheses 24

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Research Design 25
3.2 Scope of the study 25
3.3 Area of the Study 26
3.4 Study Population 26
3.5 Sample Size 27
3.6 Sampling Techniques 28
3.7 Instrument of Data Collection 29
3.8 Method of Data Collection 29
3.9 Validity and Reliability of Instrument 30
3.9 Method of Data Analysis 30
3.10 Limitations of the Study
31 CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Socio-Demographic Characteristics of Respondents 32
4.2 Thematic Analysis 34
4.3 Study Hypotheses 41
4.4 Discussion 45
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
 i
x

5.1 Summary 47
Conclusion 48
 1

CHAPTER TWO LITERATURE REVIEW

2.1 Review of Theoretical Literature

2.1.1 Overview of Wage

Card, and Krueger (1994) wage is often used interchangeably with compensation management. In

the narrow sense, wage is the price given to a worker for services rendered. However, in the broader sense,

wages are compensation or remuneration given for overall services rendered apart from the basic wage. It

includes allowances, benefits and other financial support like bonuses, workmen compensation, holiday

pay, leave allowances, overtime, etc.

Wages are often defined as returns to labour. They are payments at regular, weekly, monthly or

other intervals plus allowances such as those for working overtime, leave bonuses, adhoc bonuses and

other similar payments paid to employees by employers as specified in employment contract (Wikipedia,

201 la). It is the direct payments received for work done in a particular establishment. Wages could also be

seen from the employees' perspective as all costs incurred for the recruitment and use of employees in a

given establishment. It includes among others-direct wages, fringe benefits, social security benefits and

cost incurred for human resource training and development. Wages are means for an acceptable quality of

life in a given country. In this regards, wages are classified into three groups-subsistence wage, living

wage and fair wage (Navamukunda, 2011). Subsistence wages are remuneration that provides for the

subsistence needs of the worker. Living wage are payments that provides for subsistence and means for a

quality of life which is socially acceptable in a given society, while fair wage is remuneration which is

reached through negotiations based on factors such as opportunity cost of labour, labour market conditions

and the general cost of living. Fair wage is between living wage and subsistence wage. Wages may also be

regarded as fixed regular remuneration paid to an employee on daily or weekly basis especially to a

manual or unskilled worker (Wikipedia, 2011a). It is monetary remuneration computed on hourly, weekly,

or piece work basis, paid to a worker by the employer. Fixing of wage is a controversial subject especially
 2

it involves determining minimum wage (Neumark & Wascher, 2006). In Nigeria, minimum wage has been

an issue that is politically contentious and which have generated face -offs between organized labour

unions (Nigeria Labour Union) and the federal and state governments. Increased in minimum wage often

results to retrenchment of staff and escalations industrial crisis in Nigeria. However, Hutt (1954) argued

that collective bargaining helps in cushioning conflict that arises from wage determination. He observes

that in an industrial relation system, there are some portions of workers normal remuneration or wages

which in the absence of collective bargaining can be transferred to other factors of production at the

detriment of the employee.

2.1.2History of Wage in Nigeria

The first set of military regimes in Nigeria, three in all, handed power to a constitutionally

established civilian government on 1 October 1979 after thirteen and a- half years. Over this period, many

decrees were enacted and actions taken that have had enormous impact on public sector compensation

throughout the 1980s. Some of the important legislations included Decrees 29 and 53 of 1968 and 1969,

respectively, that sought to regulate strikes and other forms of industrial conflict; the 1973 Trade Union

Act (as amended in 1974 and 1989), that dealt with federations of trade unions, central trade unionism,

and government and administration generally; and the 1979 Trade

Disputes Act (as amended in 1977), which built upon the 1968 and 1969 decrees, that created the

Industrial Arbitration Panel and the National Industrial Court for the arbitration and adjudication of

industrial relations problems, respectively.

The many actions taken by various agencies and by officials of the state over the same period,

some claimed to have been instigated by exigencies ol the times and others being a combination of

undisguised and indirect labour control measures, have equalh left an unmistakable mark on the

formation and implementation of compensation policies in the public sector. In December 1975 the
 3

federal military government refused to recognize the Nigeria Labour Congress (NLC) formed by workers

and their leaders, but instead banned from operation, the four competing labour unions (the Nigeria

Trades Union Congress, the United Congress of Nigeria, the Labour Unity Front, and the Nigerian

Workers Congress, all of which had dissolved themselves and returned their certificate of registration to

the Registrar since April 1975), and appointed what came, to be known as the Adebiyi Tribunal.

Government banned for life eleven top union leaders, including Michael Imodu, from engaging in

union activities, and also banned all foreign labour centers and their so- called International Labour

Organizations (e.g. the Brussels-based International Confederation of Free Trade Unions - ICFTU and the

Prague-based World Federation of Trade Unions - WFTU) from operating in the country. It then

appointed a team, under the chairmanship of Michael Abiodun, as the Trade Union Administrator' to

reorganize the nearly one thousand trade unions into 42 so - called industrial unions. The NLC and the 42

new industrial unions, and 24 senior staff associations were themselves reconstituted in 1978 under the

Trades Unions (Amendment) Decree No. 22. Section 33 (2) of the Decree provided for the non-affiliation

of Senior Staff Associations to the NLC.

Aderemi, (2014) by 1979 when democracy was restored, the issue of a binding national minimum

wage had come to the fore in the public sector, the going figure being N60 a month, excluding fringe

benefits. This was raised to NI00 in 1980, an increase not large enough to prevent the crippling general

strike of 11 th May 1981. The events leading up to this and how the monthly minimum wage was finally

fixed at N125 raises further discussion. But the turmoil in the public sector over declining standards of

living and terms of employment in general continued unabated, leading to the establishment of the 1981

Presidential Commission on Parastatals (Onosode Commission) to review remuneration in federal

parastatals, the 1981 Presidential Commission on Salary and Conditions of Service of the University Staff

(Cookey Commission) for the universities, and the 1981 Presidential Commission on Conditions of

Service of Federal Polytechnics, Colleges of Technology, Advanced Teachers Colleges and National
 4

Teachers Colleges. Public sector employees were still grapping with the impact of the findings, and

implementation of awards of these commissions when the military seized power on 31 st December, 1983.

The new military regime dealt summarily with all protest groups, trades unions reaping worst

treatment because of their less subdued reactions to the rapidly declining economic situation and

oppressive political orders: Some unions were proscribed and their leaders detained without trail.

However, in terms of payment of salaries, the regime successfully cleared all arrears of salaries

accumulated by spendthrift federal and state governments during the second republic. Not much thought,

if at all, seemed to have been given to associated problems and processes of wage bargain in the public

sector by this regime before it was overthrown in August, 1985 in another military coup.

As shown below, the succeeding regime had good reason to turn its attention to wage bargain

issues. However, it was neither shy nor reluctant to enact appropriate decrees to restrain workers or trade

unions or employers when this suited its ends. Indeed, the nature of the regime's economic politics and

manner in which it sought to regulate the economy inevitably brought public sector compensation squarely

to the forefront.

In terms of specific legislations affecting the process, the most relevant were the National

Economic Emergency Powers, 1985; the National Minimum Wage (Variation) Decree; the States (Special

Development Levies) Decree No 37, 1986. Apart from reinforcing the institutional separation of the

national industrial unions from the senior staff associations and denying the latter the right to affiliate with

the NLC, the Trade Unions (Miscellaneous Provisions) Decree No. 17 of 1986 additionally withdrew the

automatic check-off system and made membership in senior staff associations voluntary. This was

followed very quickly in 1977 with the proscription of the Academic Staff Union of Universities (ASUU)

itself, an organization of University teachers that affiliated to the NLC against the expectations and wishes

of government. Then, on 28th February, 1988 and under the National Emergency Powers (Nigerian Labour
 5

Congress) Order, the national executive of the Nigeria Labour Congress was dissolved by government,

and a Sole Administrator in the person of M.O. Ogunkoya appointed to attend to the affairs of the

organization, organize delegates' conference and hold fresh elections. The ban was lifted with the swearing

in of a new executive committee on the 30 December, 1988.

The increasingly unbearable high cost of living throughout 1989 again brought out ominous

rumblings from within the ranks of public sector unions, enough for government to appoint a Tripartite

Committee on National Minimum Wage on 10th January, 1990. Badly dead-locked six months into its

sittings, the tripartite committee did not achieve much.

2.1.3 Factors Responsible for Marginal Wage Earners

Addison, and Blackburn, (1999) were of the opinion that most people work to earn a living, which

they do by supplying their labor in return for money. Laborers consist of unskilled workers, blue and

white collar workers, professional people, and small business owners. The marginal wage earners mostly

earn less and there are factors are responsible for marginal wage earners. They include the following:

1. Skills/qualification:

One of the most important factors is the relevant skills and qualifications a worker has. If you are

a qualified lawyer, then you will be able to command a higher wage. Firms have a limited choice

because the number of qualified lawyers is quite limited. For jobs with limited skills requirements,

supply will be more elastic and this will keep wages low (Card, and Krueger, 1994).

2. Marginal revenue product for labour (MRP):

Another factor in classical wage theory is the MRP of workers. Workers with higher

productivity should gain higher wages. Everything else being equal, it a worker has a higher

productivity, (e.g D2) then the worker can command a higher wage (Dinardo, 1996).

3. Monopsony:
 The theory of monopsony suggests employers will have market power in determining wages and

therefore are able to pay workers less than their MRP. In this example, a monopsony is able to

maximize profits by paying a wage of W2 (less than competitive equilibrium of WI). A traditional

monopsony would be a single employer of workers in a town, e.g steel mill owner or coal mine

owner. With no other choice of work, workers have to accept the conditions and wages of the

monopsony employer. In a modem economy, these single employers are quite rare, but arguably

many firms have significant monopsony power and have market power in setting wages.

4. Wage inequality due to hoursworked/rather than wage rates.

When examining wage inequality, we often compare hourly wage rates e.g £8 an hour versus £22

an hour. But, an important factor is how many hours a worker is able to work. For example, if you

have a guaranteed 40 hour week, you will get a certain weekly wage. However, if you are on a

zero hour contract, the firm has no obligation to employ a minimum number of hours. Some

weeks, you may only get a limited amount of hours to work, leading to lower weekly take home

page. The growth of part-time and short term contracts has led to lower gross weekly pay for

many workers and is important source of wage inequality. (Gramlich, 2000).

5. Discrimination:

Another potential source of wage inequality ids discrimination, e.g. women gaining lower hourly

pay due to perceived difference in ability. In theory, wage discrimination is outlawed, though it

may manifest itself in other forms, such as some types of workers getting few opportunities to be

promoted to higher pay scales.

6. Geographical differences:

The UK sees substantial wage inequality between different regions, e.g London sees higher

average wages - this is because of greater demand, and relatively shorter supply, due to high living

costs.
 7

2.1.4 Sources of Monopsony of power and wage inequality

Golan, et al (2001) gave the following as sources of monopsony of power and wage inequality:
• Unemployment: When unemployment is high, arguably firms gain more monopsony

power. Someone who has unsuccessfully applied for many jobs is more willing to accept lower

wages to get a job.

• Lack of Information: The theory of competitive labour markets assumes that workers

have access to different job wage rates and potential sources of employment. But, in practice, it is

difficult to have all the relevant information. It takes time to find information.

• Geographical immobility: Often work is chosen on grounds of geographical proximity or

other non-wage factor (rather than wage rates). Therefore, even if higher paid work may be

available elsewhere, it is not worth the extra commute.

• Difficulties In moving jobs: Workers often have a great reluctance to leave work. You

cannot just change jobs like deciding to buy a different type of petrol. A worker will lose on the

job training, and firms are reluctant to employ workers who have a habit of moving frequently to

get slightly higher pay. Workers can also gain loyalty to a particular place of work e.g. become

friends with co-workers.

• Part-time/Temporary Work: In recent years, we have seen growth in part-time/

temporary work. Work that is often lower paid. Part-time workers have few labour market rights

and it is relatively easy for firms to fill in vacancies with workers looking for flexile conditions. If

a part-time worker tied bargain for higher wages, it would likely fail. Employers of part-time and

temporary work arguably gain a degree of monopsony power because workers have limited ability

to bargain for higher wages; they are easily replaceable.

2.1.5Effects of Marginal Wages earning in Nigeria

It has been alleged that 80 percent of all poverty in the country is directly attributable to full-time

unemployment, part-time unemployment, inadequate wages, or a combination of all

 8

these three factors. (Freeman, 1998). Perhaps, about 30 percent of this is traced to inadequate wages paid

to employed workers. Thus, lifting wages by increasing purchasing power and effective demand

management policies would certainly reduce unemployment enhance economic growth as well as raise the

standard of living.

The search for a higher job, resulting from pay dissatisfaction, is a major reason for absenteeism and

higher labour turn-over both of which are also influenced by the decreasing attractiveness of the job in

hand. If the latter trend continues, and the aggrieved is not able to leave his job, it may lead to complete

job dissatisfaction, with its attendant consequences of psychological withdrawal, dispensary visits and

poor mental health (Homstein, Andreas and Thomas Lubik 2010). This phenomenon explains the general

level of apathy in the Nigeria public service.

The sluggish growth and the low level of income coupled with inequality in the distribution of

income as well as lack of access to social amenities have accentuated poverty levels across economic

groupings and geo-political divisions in the country. In most urban centers, poor wage incomes and high

rate of unemployment and the absence of social security unemployment benefits, have reduced the

capacity of most people to provide the basic needs of life.

While the growth in real wage incomes has been negative due to high inflationary levels, most

urban populations spend about 80 percent of their income on food CBN (1999). Thus, what is left of the

income is barely able to provide for housing, transportation, education, and health care (whose costs have

gone up by at least 500 percent since 1986). In the same vein, the intensity of poverty among the rural

dwellers manifests in very low farm incomes which are barely able to provide half the nutritional

requirements for healthy living characterized by unbalanced diet, little or no access to portable water,

electricity and basic health care facilities. The ILO, (2009) has shown that in terms of quality of life, the

deterioration in nominal and real income, unemployment and poor social infrastructure have made the

poor actually poorer since 1985. The World Bank (1993) has shown that incomes increased marginally in
 9

1985 and 1995, but CBN (2009) argues that the trend reversed negatively in 1997.

In view of the foregoing therefore, the World Bank (1990) identified four major measures to increase

the income levels of the poor, namely: increasing the demand, and therefore, the price for those factors of

production that are owned by the poor; transferring physical assets such as land to the poor; providing

social services such as education to the poor; and transferring current income to the poor through cash or

food subsidies. The bottom line is that this approach amounts to transferring in whatever form and manner

income generating resources to low income earners and consequently the poor and ensuring that they do

not drop below the poverty line.

Nigeria’s low income class supports a large part of the population which further illustrates the

intimate connection between inadequate wages and poverty. It also demonstrates why the reluctance by

government and employers of labour to increase minimum wage is not consistent with a meaningful war

against poverty. For instance, in 1997, at least 54.1 and 55.4 percent of the rural and urban Nigerian heads

of household had some form of education (Freeman, 1998). In more than 85.5 percent of all the poor

families in Nigeria in 1997, the family head is a wage earner or is self employed (110, 2009). The poverty

here stems from indefensibly low wage levels and not in the absence of job opportunities. With a poverty

line of NI5,000.00 per annum, and more than 85 percent of the working population being family bread

winners, previous studies have shown that at least 69.3 percent the working population in Nigeria earn

peasant wages i.e. below the poverty line (110, 2009). In essence, at least 69.3 percent of the Nigerian
working class are living in abject poverty.

If we define justice in terms of the absence of injustice, then, we can say that it is palpably unjust

for a nation as richly endowed as ours to have more than 43 million of its 100 million people live in

absolute poverty as late as 1995, while the country's festering poverty profile is described as widespread

and severe (110, 2009). While growth in real wage incomes has been negative due to high inflation, most

urban poor families spend about 80 percent of their income on food. Poverty conditions are not only
 1
0

measured by inadequate incomes, but also, in a large proportion of the cases, by slum living, deficient

medicare and educational facilities and opportunities as well as physical psychological stress which

disable people from making the most of opportunities even when they are offered them.

2.1.6 Impact of Minimum Wages on Marginal Wage Earners

Wages increase is aimed at placing the workers in a favourable economic position by increasing

their purchasing power in order to surmount their economic problems arising from high cost of consumer

goods which has eroded the value of their wages. The prices of goods and services are sky-rocketing.

Little wonder therefore, that workers wages are not able to absolve the gargantuan costs of living. The

fixing of minimum wage prevents the exploitation of weak, ill-informed or isolated groups of individuals.

Minimum wage affords such peoples a more comprehensive protection than is available through existing

voluntary bargaining machinery (Flinn, 2002).

Another argument is that by the introduction of Minimum Wage employers are not only hindered

from using unreasonably cheap labour, they are encouraged to use human resources more effectively and

therefore, raise productivity. The issue of minimum wage has assumed an intractable dimension. As a

result,

it gave birth to four district conventions at the international labour organization, the conventions variously

adopted in 1928, 1949, 1951 and 1970. All the essence was to strengthen the minimum wage and devising

procedures for fixing, reviewing and also avoiding necessary legalistic ambiguity (Lemos, 2004).

There are dissenting views among scholars, researchers and policy makers on the impact of minimum

wage on the citizenry. Their arguments resolve around employment, income distribution and wage

stability. For instance, Manning, Bird, (2005) observed that the minimum can have a positive impact on

employment. According to Mascella, and Thompson, (2009), economists believe that on the long-run, the

minimum wage can have a negative impact on employment.

In a developing economy such as Nigeria's, the employer has a significant market power and is able to
 1
1

control the wage that he pays. A legal imposition of the minimum wage may increase the level of

employment (Mincy, 1999). The employer has the monopsony power to pay wages below workers

productivity. In a situation where the government increases the wage paid (but not above productivity), the

employer still has the incentive to keep the worker. Ultimately, the sign of the impact of the minimum

wage on employment is an empirical question. The minimum wage has a political dimension.

The main political goal of the minimum wage is to redistribute income to low-paid workers. As a

supplement to the conventions, the international Labour organization has also passed recommendations to

help explain. In one such recommendation, Sabia, and Burkhauser, (2010), addressed particularly

developing countries that minimum wage system is meant to and should be an effective instrument of

social protection and an element in the strategy of economic and social development. For clarity, the body

further emphasized that minimum wage fixing should constitute one element in a policy designed by

nation to overcome poverty and to ensure the satisfaction of the needs of all workers and families (Starr,

1998).

Fundamentally, wage fixing according to International Labour Organization (no) should be to

'give wages earners necessary social protection as regards minimum permissible level of wages' to be

based on prevailing cost of living, among other things. Ogunnlana (1978), suggested a standing policy on

wages and salary review to conform with the guideline of International Labour Organization. One of such

International Labour Organization guideline in that salaries should be reviewed whenever consumer price

index rises. In other countries, salaries are reviewed along this International Labour Organization line. In

Gabon, for example, salaries are reviewed whenever consumer price index rises up to 2 percent; same is

applicable in India where proper legislation is being made as regards the minimum wages of various

sectors in the economy (110, 1999).

The equity of fairness of wage and salary increase are also important to employees, higher wage

increase the purchasing power or workers, accelerates demand for goods and services, thereby learning the
 1
2

stock of goods in warehouses and shops. Top officials of the Nigerian Labour Congress (NLC) during the

reign of Comrade Adams Oshiomole and then secretary, Comrade Nuhu Mohammed have argued that in

spite of the stagnation of worker's salaries, price of goods and cost of living have been galloping and have

zoomed beyond unimaginable ratio a few years back, (Lawal, 1998). As the congress president puts its

"viewed in the light of the cost of living, it is intriguing how the average Nigeria worker make ends meet"

(Lawal, 1998). The congress then, also provided statistics on the cost of living to back up its negotiation

demand for a new minimum wage per month. In September 2, 1998 the Head of State, General

Abdusalami

Abubakar, blazed the trail when he announced a national Minimum Wage of.N3,000 to state workers and

N3,500 to federal workers in Nigeria.

Similarly, president Olusegun Obasenjo on 1st May 2000 announced a national Minimum Wage of

N5,000 to State workers and N7,500 to federal workers. Later, the National Assembly passed into law the

National Minimum Wage Act in March, 2011. Therefore, the law mandates President Goodluck Jonathan

to follow suit. Accordingly, Nigerian workers are to be paid the sum ofNl 8,000 as minimum wage.

One of the compelling arguments used by proponents of a higher national minimum wage for

Nigerian workers is the pitiable level of minimum wage in Nigeria, not only when compared to the actual

cost of living, but when examined against the minimum wage in other developing countries. In Africa,

countries like Gabon, Algeria, Tunisia and Bostwana have minimum wages higher than Nigeria. For

instance, in Bostwana minimum wage is pecked at 3.8 Bostwana Pula (N465.50k) per hour. Industrial

experts and researchers alike agree that relatively high minimum wage motivates employees towards

productivity and commitment to work.

2.2 Empirical Review

Many researchers have carried out various studies which are closely related to the study in

question; some of these are hereunder reviewed. Atseye, Manyo and Ogar (2004) carried out a study on
 1
3

the impact of the National minimum wage on the socio-economic characteristics of low income workers in

Calabar Municipal Council Area of Cross River State, Nigeria. Ex post facto researcher design was

adopted for the study. A random sample was conducted to select 305 respondents across government

ministries, departments, agencies and parastatals. The study utilized two theoretical frameworks: Relative

Deprivation Theory and Public Interest Theory. The major instrument of data collection was questionnaire

structured to reflect Likert Scale with 25 items. Data collated were analysed using mean statistics.

Hypotheses test statistics was Pearson product Moment Correlation coefficient. The results show that the

National minimum wage has not significantly impacted on poverty, employment, income stability and

saving of low age earners in the public sector. The results provide empirical evidence to support

theoretical expectations and existing research findings, it was recommended that public- private

partnership should formulate policies and programmes to alleviate the burden of poverty among the

citizens for the betterment of the society. The study is related to the present study because it focuses on

national minimum wage on low income earners but failed to failed address the survival strategies for

marginal wage earners which the present study is going to address.

In other development in the research of Agba and Ushie (2013) carried out a study on medical and

Para-medical staff perception of the impact of wage differential on industrial disputes in Nigerian

hospitals. A sample of 1109 respondent were purposively selected from Primary, Secondary, and Tertiary

hospitals in South-South Geo-political Zone of Nigeria (SSGZN). Information was elicited from

respondents via structured questionnaire. Elicited data was analyzed using Pearson product moment

correlation coefficient (r) and multiple regression analysis. Results indicated that wage differentials in

terms of basic salary, hazard and fringe benefit allowance significantly influenced industrial disputes in

Nigerian hospitals. The study further revealed that sociodemographic predictors such as sex, age, category

of staff, educational qualification and rank could also influence the incidence of industrial disputes in

Nigerian hospitals. We recommended among others policy reform options and the upward review of
 1
4

medical and para-medical staff wages in Nigeria.

This study is related to the present study in the sense that it points out wage difference between

medical and para-medical staff but failed to address the survival strategies for marginal low wage earners

which the present study is going to address.

2.3 Review of Related Theories

This study adopted three theories, viz: (1) Erica Goshen (1991) wage Differentials Theory (WDT),

(2) Subsistence Theory of Wages/Iron or Brazen Law of Wages and Public Interest Theory.

Erica Goshen (1991) Wage Differential Theory (WDT) proposed reasons for wages variation

among workers, these factors include labour quality, compensation differentials, cost of information,

efficiency wage, bargaining power of workers/unions and employer sharing profit with employees.

Goshen (1991) posits that the systematic sorting of workers by their ability is significant for the

establishment of wage differentials. That workers level of education, their productive capacities and the

quality of their input and output determined wage variation. Employer's ability of policy to pay

compensation to employee for working under adverse conditions or environment could also influence

workers' wages. Another explanation for wage variation suggests that the cost of employees accessing vital

information for juicy employment elsewhere plays significantly role in wage differentials. WDT posit that

employers' decision to use salary/wage as a stimuli or motivation for efficiency could account for wage

differentials. This involves the employees more than the market-clearing wage in order to motivate them

to increase productivity. Goshen (1991) further posits that workers bargaining power through their various

unions could also determine wage and significantly influence Wage differential among colleagues. Goshen

added that employers' willingness to share profits with employees could also be responsible for wage

differentials.

Subsistence Theory of Wages/Iron or Brazen Law of Wages owes its origin to Physiocratic School
 1
5

of France. The theory posits that wages in a long run should be equal to the minimum level of subsistence

in a given society; this implies that wages should be the amount which is just sufficient to meet the basic

necessities of life of the employee and his family in a given society. The theory argues that if wages

exceed subsistence level, the worker will be exposed to extravagant life. The worker will marry early and

will produce more children and this will lead to the production of excess workers more than what

employees required. Consequently, the supply of labour will exceed demand leading to a downward slope

in workers' wages, which may not be sufficient to maintain employees' families. When this happens,

agitation for wages is unavoidable and industrial conflict is eminent. The theory is criticized for its wrong

preposition that when money income increases beyond subsistence level, workers will marry early and

produce more children. On the contrary, high profile people/workers have few numbers of children

(http:www.economiesconcepts 2011).
Public Interest Theory on its own was postulated to correct the imperfections in the market-driven
economy. Peltzman (1989) in his path-breaking paper presented at Brookins Institute provided a formal
proposition to the economic theory of public interest regulation. This theory holds that regulation of
public activities is supplied in response to the demand of the public for the correction of inefficient or
inequitable market practices. An implicit assumption of the public interest theory according to Uche
(2000) is that regulation is in the main, aimed at protecting the public. To achieve its aim, regulation
based on the above principle should aim at equipping the public with relevant information necessary for
decision making. Regulation in the public interest should also strive to protect the public from
monopolies and industries that generate substantialexternal costs and benefits (Uche, 2000).

Further assumption is that some forms of activities, businesses or otherwise do no,

a, ways function in the interest of the public without supervision and control. Th.s v,ew

has a historical antecedent regulation in the past (and even today) had almost always
foUowed some form of crisis or public dissent. Example, in Nigeria the mtroduchon of

The National Minimum Wage was an attempt to redistribute income because of the
rin sn The establishment of the
interstate failure of the market-driven economy to do s .

commerce commission in the USA was as a result of protest by populist farmer against

exploitative rates levied by the railroads. The establishment of the Secunt.es and Exchange

Commission UK is another crisis-driven regulation.

 1
6

2.4 Theoretical Framework

The theoretical framework adopted for this study is Public Interest Theory

propounded by Peltzman in the year (1989). This theory holds that regulation of public

activities is supplied in response to the demand of the public for the correction of

inefficient or inequitable market practices. The relevance of this theory towards this

research is that it will help the regulatory bodies in charge of welfare of workers to

channeled the factors responsible for low income earners to appropriate authority in a bid

to address and correct the factors responsible for low wage earners such as economic

recession, inequitable market practices, unavailability of skills acquisition center and lack

of education needed for low wage earners to overcome illiterate needed for to earn high

income in order to increase their living standard of living. Such effort can be achieved

through trade union and other concerned organizations through the combined synergy

with government in order to address the factors associated with marginal wage earners in Nigeria

and Abakaliki in particular.

2.5 Research Hypotheses

The following hypotheses have been formulated for this study

1. Economic status is related to engagement in low wage employment with people from poor

background more likely to engage in low wage earning jobs than people from well-off families.

2. The less educated people are the higher the probability of engaging in marginal wage jobs.

3. Gender is related to marginal earning jobs with females more likely to get employed in

marginal earning jobs.

The less available good paying jobs are the more people take up marginal earning jobs

.CHAPTER THREE RESEARCH METHODOLOGY

3.1 Research Design

The design adopted for this research is survey design. Survey design is a design
 1
7

that enables the researcher to have an idea of a large population at one point in time. It involves asking a

sample of a population (target population) a number of questions with the use of questionnaire or oral

interview and recording answers for subsequent analysis. Specifically sample of the population is studied

and the selection is made such that the sample is representative of the whole population.

Olaitan, Ali, Eyo and Sowande (2000), explained survey research design as one which studies

large or small population by selecting and analyzing data collected from the group through the use of

sampling. According to Uzoagulu (2011) a research design is a plan or blue print which specifies how data

relating to a given problem should be collected and analyzed; it provides the procedural outline for the

conduct of any given investigation. The researcher adopted survey research design because of the

quantitative and descriptive nature of the study.

3.2 Scope of the Study

The study is focused on investigating survival strategies of marginal wage earners in Abakaliki

metropolis. The scope of the study was deliberately limited to factors responsible for low wage earning in

Abakaliki metropolis, effects of marginal wage earning in Abakaliki metropolis, who engage in marginal

jobs?, what are the survival strategies adopted by marginal wage earners in Abakaliki metropolis and how

can wage earning be improved in Abakaliki.

3.3 Area of the Study

This study was carried out at Abakaliki metropolis which is the capital city of Ebonyi State in

Southern Eastern Nigeria, located at 64 kilometers South East of Enugu. The inhabitants are primarily

members of the Igbo nation, it was the headquarters of the Ogoja province before the creation of the South

Eastern State in 1967. The name Abakaliki which originally means Aba Nkaleke is a name of a:

community in Izzi land (Nkaleke). The demography of Abakaliki consists of Izzi people who are the

owners of the land and other indigenous and non-indigenous alike. The religion practiced includes
 1
8

Christianity and Islam which Islamic is mainly practiced by Muslims residing in the area.

Abakaliki is a center of agricultural trade including such products as yams, cassava, rice, and both

palm oil and palm kernels, as well as kola nuts. It is also known for its local lead, zinc, salt, and limestone

mining or quarrying.

The Abakaliki inhabitants were farmers, traders, business men and women, students, technicians,

civil servants and public servants.

3.4 Population of the Study

Population of study is the total number of elements within a given environment, which a research sets out
to study. The population of study again refers to a group of people, objects, or events which a researcher
deliberately decided to study primarily to obtain necessary information needed to solve a given problem.
Population consists of elements, subjects or observations relating to a particular phenomenon of interest to
a researcher (Asika, 1991). To Anaekwe (2002), a population of study includes all members of a well
defined class of people, objects or events which must possess at least, an attribute which is common to all
of them. According to the 2006 National Population Census (NPC), the population of the people in the area
classified as Abakaliki urban located at th
e

intersection among

Abakaliki, Ebonyi and Izzi

Local Government Areas,

was eighty nine thousand,

five hundred and forty nine

(89, 549) spread across the

following areas and

percentages:

a. Residential

(59%)

b. Commercial

(5%)

c. Industrial (7%)

d. Institutional

(29%)

This population was

projected and estimated to

have 1.3% increases per

annum while the

percentages of the areas

(spread) is expected to be

constant for 10 years (NPC,

2006). The projected

population is thus
calculated:

Population in 2016

= Pn = Po (1 + r)n

Where: Pn -

Projected

population for the year

= 194,591

Po =

Initial

population

of the base

year =

89,549

1 =

Constant

r =

Annual

growth rate

1.3 %
n =
Expected
number of
years (2006
- 2016) =
10
3.5 Sample Size

Uzoagulu (1998)
 had earlier described a

sample as a small group of

elements or subjects drawn

through a definite procedure

from a specific population

which is meant to represent

the population when it

cannot be studied. To

determine the sample size

from the population of the

study, the multi stage cluster

sampling was used. Multi

stage cluster simply was

apply because it is a

population or geographical

area that is divided into

units or sections.

The study used Taro

Yamani’s formula
of
n
N
1
+ N(e)2Desired sample size

Where nN Population of the study

constant
e accepted error margin of 0.0
5
Therefore

n 194.591
 1+
194
.59
1(0.
05)
2

194
.59
1
486
.48

399.
99

Approximately = 400

The sample size of

the study is 400.

3.6 Sampling
Techniques

The non-probability
sampling techniques were
adopted using multi-stage
sampling techniques. To
apply the cluster sampling or
multi state cluster sampling
techniques, the population is
divided into units or
sections. Then with the use
of sample random sampling,
a specified number of these
units or sections is drawn
from Abakaliki urban which
is Kpirikpiri, Gunning Road,
Afikpo Road and Water
Works. For example in a
survey of the urban
household of Eastern
Nigeria, the first stage is to
randomly selected one of the
states that make up Eastern
Nigerian then he moves on
to select towns he would
want to study from the
selected state. Finally he
selects the communities etc.
if for instance Abakaliki is
one of the towns selected, in
Abakaliki urban will have to
be identified as follows:
Afikpo Road, water works,
Kpirikpiri, Gunning Road,
Ogoja Road, Nna Street etc.
The researcher then selects
the areas he wishes to study.
Basically, cluster sampling
move in stages and this is
why it is called multi state
sampling techniques
.

In applying this technique, the researcher does not need to have a lot of the elements in the entire

population prior to sampling. Also, he does not have to travel to everywhere in the geographical areas

inhabiting his population. His efforts are concentrate only on those sections that have been selected.

3.7 Instruments for Data Collection

Majority of the data generated in the field were through the use of instrument called

questionnaire. The questionnaire contains series of questions which the researcher uses to induce answers

to information about a particular issue from the respondent (Odo, 1992).

The measuring instrument adopted in this research is the questionnaire. The choice of the

questionnaire over other measuring instruments was prompted by the inherent of the questionnaire

method. The questionnaire facilities used the analysis of data without covering the quality of the result of

the study.

The questionnaire is referred to as a set of questions based on the topic of study which are drawn

and administered on the respondents for their responses. This is suitable in survey studies, for

measurement of public opinion attitude and perceptions of a particular set or group of people.

The questionnaire was designed with a close-ended format, whereby all the possible answer to

questions are listed for the respondents to choose from.

3.8 Method of Data Collection

The questionnaire was administered to all sampled area which includes Kpirikpiri, Gunning Road, Afikpo
Road, Afikpo Road and Water Works and the places of work visited include: Restaurant, Computer Business
Centers, Vegas eatery, Private Hospital, book shops, and Pharmaceutical shops in Abakaliki metropolis by the
researcher and therespondents were requested to complete questionnaire and return to the researcher.

3.9 Validity and Reliability of Instrument

Validity refers to the extent to which an empirical measures adequately reflects the real meaning' of

the concept under consideration (Rubin and Babbi, 2005). The face validity and content validity were tested
by subjecting the instruments to others to assess whether they really measure what they were meant to

measure. The criterion related validity and construct validity were proven by subjecting the measure to

external comparism to find out whether it would produce the same result.

Reliability means whether a particular technique applied repeatedly to the same object, would yield

the same result each time. To ensure reliability of the measure were used for the researcher were careful to ask

respondents only about things were able to answer. Another way of ensuring reliability was to design the

instrument that have proven reliable in the past. Finally, clarify, specificity, training and practice before going

to the field were means used to ensure validity and reliability of the instrument used.

3.10 Method of Data Analysis

This deals with the type of statistical tools employed in analyzing the research

data. The data collected from the research questionnaire responses were presented in

percentage of interpret the frequency of responses and these responses frequencies were

put into tables.

In this study, simple percentage was adopted.

% - R x 100

N1

Where % = Percentage
 N Total number of respondent
R = Number of responses
The hypothesis were tested using chi-square

2
2 (O - E)

Where £ summation

O Observed frequency

E Expected frequency
(O - E)2 = the difference between observed and expected value at significant

level of 0.05 degree of freedom.

3.11 Limitations of the Study

A lot of problems were encountered in carrying out the research work. The limitations are

presented below:

The unavailability of financial resources was a serious constraints to the study.

The researcher had to source fund from different areas such as Uncles, Niece, parents, friends and

relations to ensure the completion of the work.

Sourcing of materials for literature review posed a serious problem to the researcher. This was

abated by the diligence and prudence of the researcher in sourcing the materials from internet,

libraries of various institutions in Nigeria.

Finally, the researcher encountered problem of going to lecture, writing assignments and strike actions
which significantly affected the completing of the study on time
 2
7

.CHAPTER FOUR DATA PRESENTATION AND ANALYSIS

The aim here is to present data, analyse and discuss the data collected from primary sources

which a view of testing the stated hypothesis guiding this work. The questionnaires were distributed to the

sample population of four hundred (400) which comprises of marginal wage earners in Abakaliki urban.

Out of 400 questionnaires distributed 390 were returned while 10 were discarded.

4.1 Socio-Demographic Characteristics of Respondents

Table 1: Sex Distribution of Respondents

Respondents Percentage
Sex
Male 190 48.7
Female 200 51.3
Total 390 100
Source: Field work survey, 2018
Table 1 above, 190 respondents, representing 48.7% were male while 200 respondents,

representing 51.3% were female. This makes a total of 390 respondents.

Table 2: Distribution of Respondents by Age

Age Respondents Percentage

18-21 100 25.6
22-25 120 30.8
26-29 80 20.5
30 and above 90 23.1
Total 390 100
Source: Field work survey, 2018
Table 2 above shows that 100 questionnaires
Respondents
was distributed to the 100Percentage
respondents, representing
25.6%
Singlewere between the age bracket200
of 18 - 21; 120 respondents, representing
51.3 30.8% were between the
age bracket of 22 - 25 years; 80 respondents, representing 20.5% were between the age bracket of 26-
29Separated 20
years while 90 respondents, representing 23.1% were between the age 5.7 bracket of 30 and
Married 140
above.Table 3: Distribution of Respondents by Marital Status 35.9
Divorced 30 7.7
Total 390 100
Source: Field work survey, 2018

Table 3 above shows that 51.3% were single; 5.1% were separated, 35.9% were

married while 7.7% were divorced.

50 12.8
Table 4: Distribution of Respondents90by Educational Qualification 23.1
SSCE/WAEC
OND/NCE 110 28.2
Qualification__________________Respondents___________________Percentage
 2
8

B.Sc/HND 100 25.6

Others 40 10.3
Total 390 100

Source: Field work survey, 2018

Table 4 above shows that 50 respondents, representing 12.8% are with FSLC; 90

respondents, representing 23.1% are with SSCE/WAEC; 110 respondents, representing

28.2% are with OND/NCE; 100 respondents, representing 25.6% are with B.Sc/HND while

40 respondents, representing 10.3% are with other certificates.

200 51.2
Table 5:Attendants
Office Distribution of Respondents80by Occupation 20.5
Occupation____________________Respondents___________________Percentage
Artisans 40 10.3
Applicant 60 15.4
Others specify 10 2.6
Total 390 100
Source: Field work survey, 2018

Table 5 above shows that 150 respondents, representing 51.2% were sales persons;

80 respondents, representing 20.5% were office attendants; 40 respondents, representing

10.3% were Artisans; 60 respondents, representing 15.4% were applicant while 10

respondents,
representing 2.6 specify others apart from the above occupation mentioned.
Table 6: Distribution of RespondentsRespondents
by Religion Percentage
Religion
Christianity 250 64.1
African Traditional Religion 60 15.4
Islam 50 12.8
Others 30 7.7
Total 390 100
Source: Field work survey, 2018

Table 6 above shows that 250 respondents, representing 64.1% were Christians; 60

respondents, representing 15.4% are African tradition; 50 respondents, representing 12.8% are Islam

while 30 respondents, representing 7.7 are others respectively.

Table 7: State of Origin of Respondents
Respondents Percentage
State
Anambra 65 16.7
Ebonyi 140 35.9
 2
9

Enugu 60 15.4
Imo 70 17.9
Abia 55 14.1
Total 390 100
Source: Field work survey, 2018

Table 7 above shows that 65 respondents, representing 16.7% are from Anambra State; 140

respondents, representing 35.9% are from Ebonyi State; 60 respondents, representing 15.4%

respondents are from Enugu; 70 respondents, representing 17.9% from Imo State while 55

respondents, representing 14.1% are from Abia State.

4.2 Thematic Analysis

Table 8: Factors responsible for lowRespondents
wage earning in Abakaliki metropolis
Percentage
Responses
Unemployment 140 35.9
Inadequate minimum wage 60 15.4
Lack of vocational skills 70 17.9
Lack of education 120 30.8
Total 390 100
Source: Field work survey, 2018

Table 8 above shows that 14.1% said inflation; 35.9% said unemployment; 15.4% said

inadequate minimum wage; 17.9% said lack of vocational skills while 30.8% said lack of education. Data

from indepth interview supports this data from questionnaires. According to participants in the indepth

interview, unemployment, inadequate minimum wage, lack of vocational skills and lack of education are

major factors responsible for low wage earning in Abakaiki metropolis.

Table 9: Survival Strategies adoptedRespondents

by marginal wage earners in Abakaliki
Percentage
metropolis
Responses
Squatting with friends or family 265 67.9%
member
Paying for one apartment 10 2.6

Waking up early and trekking to 15 3.8%

work
Combining rent fee with friends 60 15.4

Living with parents 40 10.3

Total 390 100
 3
0

Source: Field work survey, 2018

Table 9 above shows that 67.9% said squatting with friends or family members; 2.6 said paying

for one apartment; 3.8% said waking up early and trekking to work; 15.4% said combining rent fee with

friends while 10.3% said living with parents. Data from indepth interview supports this data from

questionnaires. According to participants in the indepth interview squatting with friends or family

members; paying for one apartment; waking up early and trekking to work; combining rent fee with

friends and living with parents were survival strategies adopted by marginal wage earners in Abakaliki

metropolis.

Table 10: Category of people mainlyRespondents

engaged in marginal wage earning
Percentage
Responses
Non-educated 295 75.7
Poor people 45 11.5%
Students 50 12.8%
Total 390 100
Source: Field work survey, 2018

Table 10 above shows that 75.7% said yes, non-educated are people that mainly engaged in

marginal wage earning; 11.5% said poor people while 12.8% said students are people that mainly

engaged in marginal wage earning. Data from indepth interview supports this data from questionnaires.

According to participants in the indepth interview non-educated; poor people and students were category

of people mainly engaged in marginal wage earning.

Table 11: Distribution of Respondents

Respondents
by Sex Percentage
Responses
Male 170 43.6
Female 220 56.4
Total 390 100
Source: Field work survey, 2018

Table 11 above shows that 43.6% said male are predominantly in marginal wage earning while

56.4% said female are predominantly in marginal wage earning. Data from indepth interview supports

this data from questionnaires. According to participants in the indepth interview male and female are

predominantly in marginal wage earning.

 3
1

Table 12: Educational Status of Marginal Wage

Respondents
Earners * Percentage
Responses
No formal education 280 71.8
First School Leaving Certificate 40 10.3
Secondary school 50 12.8
Tertiary institution 20 5.1
Total 390 100
Source: Field work survey, 2018

Table 12 above shows that 71.8 said no formal education, 10.3% said First School Leaving

Certificate, 12.8% said secondary school while 5.1% said tertiary institution.

Data from indepth interview supports this data from questionnaire. According to participants in

the indepth interview no formal education; first school leaving certificate, secondary school and tertiary

institution were educational status that engaged in marginal wage earners.

Table 13: Monthly wage of marginalRespondents
wage earners Percentage
Responses
5000 300 76.9
7500 65 16.7
10,000 25 6.4
Total 390 100
Source: Field work survey, 2018

Table 13 above shows that 76.9% said that they earn five thousand naira only; 16.7% said seven

thousand five hundred naira only while 6.4 said that they earn ten thousand naira only. Data from in-depth

interview supports this data from questionnaires. According to participants in the in-depth interview 5000,

7500 and 10,000 were their monthly wages that they earn which they complain bitterly that it is not even

enough to cater for their basic needs.

Table 14: What kind of services do marginal
Respondents
wage earners provide? Percentage
Responses
Cleaners 200 51.3
Sales persons 125 32.0
Office attendants 65 16.7
Total 390 100
Source: Field work survey, 2018

Table 14 above shows that 51.3% said cleaners, 32.0% said sales persons while 16.7% said office

attendants. Data from in-depth interview supports this data from questionnaire. According to participants

in the in-depth interviews cleaners, sales persons and office attendants were kind of services that marginal
 3
2

wage earners provide.

Table 15: Major employers of marginal
Respondents
wage earners Percentage
Responses
Private organization 360 92.3
Government organization 10 2.6
I don’t know 20 51.%
Total 390 100
Source: Field work survey, 2018

Table 15 above shows that 92.3% said private organisation is the major employers of marginal

wage earners; 2.6% said government organization is the major employers of marginal wage earners while

5.1% said I don’t know whether it is private or government. Data from in-

depth interview supports this data from questionnaires. According to participants in the in-depth

interview, private organization and government organization are the employers of marginal wage

earners but private organization is the major employers of marginal wage earners.

Table 16: How secure is the job of marginal

Respondents
wage earners Percentage
Responses
No job security 300 76.9
Job security 70 17.9%
Others 20 5.2%
Total 390 100
Source: Field work survey, 2018

Table 16 above shows that 76.9% said no job security; 17.9% said security while 20

respondents, representing 5.2% said others. Data from in-depth interview supports this data from

questionnaires. According to participants in the in-depth interview no job security and job security but

the participants complain that private organization condition of service is porous unlike the workers in

government establishment.

Table 17: Problems of Marginal wage earners inRespondents

Abakaliki Percentage
Responses
Poor accommodation 150 38.5%
Non-affordability of good hospital 40 10.2
Inadequate provision of basic needs 90 23.1
Hunger 110 28.2%
Others specify 0 0
Total 390 100
Source: Field work survey, 2018
 3
3

Table 17 above shows that 38.5% said poor accommodation is the problem of marginal wage

earners in Abakaliki; 10.2% said non-affordability of good hospital is the problem of marginal wage

earners in Abakaliki; 23.1% said inadequate provision of basic needs is the problem of marginal wage

earners in Abakaliki; 28.2% said hunger is the problem of marginal wage earners in Abakaliki. Data

from in-depth interview supports this data from questionnaires. According to participants in the in-

depth interview poor accommodation, non-affordability of good hospital, inadequate provision of basic

needs and hunger were the problems of marginal

wage earners in Abakaliki.

Table 18: How can the lot of marginal wage earners be improved in Abakaliki

Responses ______________________________________________Respondents Percentage___________

Building free apartment for workers 120 30.7
Government in collaboration with private organization in 110 28.2
implementing minimum wage of marginal wage earners

Employers providing free transportation for workers 100 25.6

Marginal wage earners engaging in extra jobs 60 15.4
Total 390 100
Source: Field work survey, 2018

Table 18 above shows that 30.7% said that building free apartment for workers; 28.2%

said government in collaboration with private organization in implementing minimum wage of

marginal wage earners; 25.6% said employers providing free transportation for workers while

15.4% said that marginal wage earners engaging in extra jobs. Data from in-depth interview

supports this data from questionnaire. According to participants in the in-depth interview

building free apartment, government in collaboration with private organization in implementing

minimum wage of marginal wage earners, employers providing free transportation for workers

and marginal wage earners engaging in extra jobs were the major ways marginal wage earners

can be improved in Abakaliki.

Table 19: Economic status is related to engagement in low wage employment in Abakaliki
 3
4

urban. Respondents Percentage

Responses
Yes 250 64.1
No 80 20.5
I don’t know 60 15.4
Total 390 100
Source: Field work survey, 2018

Table 19 above shows that 64.1% said yes that economic status is related to engagement in low wage

employment in Abakaliki urban; 20.5% said no that economic status is related to engagement in low wage

employment in Abakaliki urban while 15.4% said I don’t know whether economic status is related to

engagement in low wage employment in Abakaliki urban.

Data from in-depth interview said yes that economic status such as lack of industries which

necessitated them to engage in low wage employment while some said no that economic status such as

lack of industries does not make them to engage in low wage employment but family socio-economic

status.

Respondents Percentage
Table
Yes 20: The Less Educated People
300are the higher the probability76.9
of engaging in marginal wage
No 80 20.5
earners.
I don’t know 10 2.6
Total 390 100
Source: Field work survey, 2018

Table 20 above shows that 76.9% said yes that the less educated people are the higher the

probability of engaging in marginal wage jobs; 20.5% said no that the less educated people are the lower

the probability of engaging in marginal jobs while 2.6 said I don’t know whether economic status is

related to engagement in low wage employment in Abakaliki urban. Data from in-depth interview

supports this data from questionnaires. According to participants in the in-depth interview majority of

them said yes that they engage in marginal wage jobs as a result of non-formal education or lack of higher

qualification while few say no.

Respondents Percentage
Table
Yes 21: The poorer the economy of a
300 society the more likely the inhabitants
76.9 engage in marginal wage
No 80 20.5
earning jobs.
 3
5

I don’t know 10 2.6

Total 390 100
Source: Field work survey, 2018

Table 2 above shows that 76.9% said yes that the poorer the economy of a society the more likely

the inhabitants in marginal earning jobs; 20.5% said No that the poorer the economy of a society the more

likely the inhabitants are not to engage in marginal earning jobs while 2.6% said I don’t know whether

poorer the economy of a society the more likely the inhabitants engage in marginal earning jobs. Data

from in-depth interview supports this data from questionnaires. According to participants in the in-depth

interview the majority of the respondents said yes the poor nature of the economy in Abakaliki is

declining which necessitated them to engage in marginal wage earning jobs.

4.3 Study Hypotheses

Hypothesis One

H„: Economic status is not related to engagement in low wage employment in Abakaliki.

Hi: Economic status is related to engagement in low wage employment in Abakaliki.

The hypothesis will be tested according to table 19 from the questionnaire collected, using chi- square test

we have:

x2 = (O-E')
S

Where 0 Observed frequency

—

E = Expected frequency

2 = sum of contingency table

Responses Respondents Percentage

Yes 250 64.1
No 80 20.5
1 don’t know 60 15.4
Total 390 100
Source: Field work survey, 2018

Expected frequency = 390 = 130

 3
6

Chi-Square Calculation

Options (O) Expected frequency (O-E) (O-E)2

m1 0
E
250 130 120 14400 110.8
80 130 50 2500 19.2
70 130 60 3600 27.9
Total 157.9

Therefore, calculated chi-square - 157.9

To computer the degree of freedom (DF) or critical value

DF = (R-1)(C-1)

Where R = Number of row, 3

C = Number of columns, 2

DF = (3 - 1) (2 - 1)
( 2) ( 1)

DF = 2

We now use 0.05 level of significance, the critical of x 2 value for 2DF and 0.05 level of significance is 157.9.

Decision Rule

Since the calculated value is greater than the critical value, we reject the null hypothesis and accept

the alternative. This implies that economic status is related to engagement in low wage employment in

Abakaliki.

Hypothesis Two

H 0: The less educated people are the lower the probability of engaging in marginal wage jobs.

Hi: The less educated people are the higher the probability of engaging in marginal wage

jobs.
 3
7

The hypothesis will be tested according to table 20 from the questionnaire collected, using chi- square test

we have:
2
(O- E)
I

Where O = Observed frequency

E = Expected frequency
= sum of contingency tabl
e

2
Responses Respondents Percentage
Yes 300 76.9
No 90 20.5
I don’t know 10 2.6
Total 390 100
Source: Field work survey, 2018

Expected frequency = 390 = 130

3

Chi-Square Calculation
Expected frequency (O-E) (O - E)2 (O - E)2 E
Options (O)
300 130 170 28900 222.3
80 130 50 2500 19.2
10 130 120 14400 36.9
Total 278.4

Therefore, calculated chi-square = 278.4

To computer the degree of freedom (DF) or critical value

DF = (R-1)(C-1)

Where R = Number of row, 3

C = Number of columns, 2

DF = (3 - 1) (2 — 1)
 3
8

(2) (1)

DF = 2

We now use 0.05 level of significance, the critical of x 2 value for 2DF and 0.05 level of significance is

278.4.

Decision Rule

Since the calculated value is greater than the critical value, we reject the null hypothesis and

accept the alternative. This implies that the less educated people are the higher the probability of

engaging in marginal wage jobs.

Hypothesis Three

Hi: The richer the economy of a society the more likely the inhabitants engage in marginal

earning jobs.

H 0: The poorer the economy of a society the more likely the inhabitants engage in marginal

earning jobs.

The hypothesis will be tested according to table 21 from the questionnaire collected, using chi-

square test we have:

x2 = (O-E)

2
Where 0 — Observed frequency
E Expected frequency

2 : - sum of contingency table

Responses Respondents Percentage

Yes 300 76.9
No 80 20.5
I don’t know 10 2.6
Total 390 100
Source: Field work survey, 2018
 3
9

Expected frequency = 390 = 130

3

Chi-Square Calculation
Expected frequency (O-E) (O-E)2 (O-E)2
Options (O) E
300 130 170 28900 222.3
80 130 50 2500 19.2
10 130 120 14400 110.8
Total 339.5

Therefore, calculated chi-square = 339.5

To computer the degree of freedom (DF) or critical value

DF = (R-1)(C-1)

Where R = Number of row, 3

C = Number of columns, 2 DF — (3 — 1)

(2 — 1)

(2) (1)

DF = 2

• • • • 7

We now use 0.05 level of significance, the critical of x value for 2DF and 0.05 level of significance is 339.5.

Decision Rule

Since the calculated value is greater than the critical value, we reject the null hypothesis and accept

the alternative. This implies that the poorer the economy of a society the more likely the inhabitants engage

in marginal earning jobs.

4.4 Discussion

In the course of this study, three hypotheses were used and literature review. In discussion the

findings, we are going to make use of the above hypotheses for the study. In determining that economic
 4
0

status is related to engagement in low wage employment in Abakaliki in hypotheses one the researcher

discovered that economic status of people from poor background engaged in low wage earning jobs than

people from well-off families. My discussion with the respondents I discovered that majority of people that

engage in low wage are from single parenthood and some have lost their parents. Some whose parents are

still have cannot afford all the basic needs which made them to engage in low wage job in order to argument

the income of their parents.

In another development in determining less educated people are the higher the probability of

engaging in marginal wage jobs in hypotheses two. The researcher found out that people that engage in

marginal wage jobs are from less educated background which is as a result of inability of their parents to

send them to school. Those who manage to finish primary school complain that there is no money to further

their education which necessitated them from engaging in marginal wage jobs. The majority of the

respondents I interviewed told me that it is as a result of low level of education and lack of vocational skills

push them to engage in marginal wage jobs in order to make ends meet. To buttress this point in literature

review the researcher indicated that if you are a qualified lawyer then you will be able to command a higher

wage than those without skills or qualification as a lawyer.

In addition in determining poorer the economy of a society the more likely the inhabitants engage in

marginal earning jobs in hypotheses three. The researcher discovered that in Abakaliki urban there are poor

economic growth which was as a result of industries, multiplication of taxes for entrepreneurial to thrive and

lack of stable power supply. Since these indices that thrive economic growth is lacking which the existing

ones took as an opportunity to pay low skill and uneducated people low wage thereby necessitated the

marginal wage earners in Abakaliki metropolis to seek way of surviving by squatting with friends or family

members, waking up early and trekking to work and combining rent fee with friends. To buttress this point,
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in literature review of this work showed that when unemployment is high, arguably firms gain more

monopsony power. Someone who has unsuccessfully applied for many jobs is more willing to accept lower

wages to get a job.

CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary

The study investigated "Survival Strategies of Marginal Wage Earners in Abakaliki Metropolis. The

study therefore summarized the findings of the study.

From the table, it was discovered that there are factors responsible for low wage earning in Abakaliki

metropolis. According to the respondents, they said that the factors include, unemployment, inadequate

minimum wage, lack of vocational skill and lack of education. These factors are the major cause of low

wage earning in Abakaliki metropolis. The respondents also comment that they experience poor

accommodation problem, non affordability of good hospital, inadequate provision of basic needs and hunger

as a result of low wage earning.

Furthermore, the researcher discovered that the respondents (marginal wage

earners) adopted various surviving strategies aimed at reducing the effect of low wage

which include: squatting with friends or family members, paying for one apartment, waking up early and

trekking to work and combing rent fee with friends. The respondents lamented that without these strategies

they will suffer severely which could lead to premature death.

From the research question, it was also discovered that the majority that engaged in low wage

earning are female as a result of no formal education, federal school leaving certificate and secondary school

which such educational qualification cannot afford to enhance affordable salary needed for enhancing

standard of living. For instance, the researcher discovered that they earn between five thousand naira to ten
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thousand naira only which is not even enough to buy anything in this current economic recession.

Finally, the study found out that lot of marginal wage earners can

be improved through the following: building of apartment for workers, government in

collaboration with private organization implementing minimum wage of marginal wage earners, employers

providing free transportation for workers and marginal wage earners engaging in extra jobs.

5.1 Conclusion

Low wage has become a major problem facing workers in private organization most especially the

marginal wage earners who does not have the requisite vocational skills or relevant educational qualification

the inability of government to provide the infrastructural facilities such as adequate power supply and

favourable tax policy needed for investors to come into invest in the economy so that the marginal wage

earners can survive through working for more than one places to argument their wage but due to scarcity of

job in the Nigeria and Abakaliki in particular the marginal wage earners cannot afford to engage in more

than one jobs thereby affecting their living standard. The inadequate minimum wage policy for marginal

wage earners is also contributing to low wage earning in Abakaliki which all hands must be on deck to

ensure improvement of wage for marginal wage earners in order to avert cases of poor accommodation, non

affordability of good hospital, inadequate provision of basic needs and hunger witnessed or experienced by

low wage earners in Abakaliki.

5.3 Recommendations

Having noted the factors responsible for marginal wage earners, the study recommend as follows:

1. Government in collaboration with private organization should implement

minimum wage of marginal wage earners.

2. Government as a matter of fact should provide infrastructural facilities most

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especially adequate power supply in order to open up doors for investors to invest in economy of

Ebonyi State.
3. Marginal wage earners should not depend solely on one job; they should engage in extra jobs in
order to argument their salary.References

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.Appendix I
\
Department of Psychology and Sociological
Studies,
Faculty of Social Sciences and Humanities,
Ebonyi State University,
P.M.B. 053,
Abakaliki.

6th March, 2019

Dear respondent,

I am a final year student of the above mentioned institution. I am conducting a research on

the topic: “Survival of Marginal Wage Earners in Abakaliki Metrpolis”.

Kindly assist me by answering the questions in the questionnaire. The purpose of this study is
purely academics. You are therefore, assured that the information provided will be treated with
confidentiality.

Yours faithfully,

Igede Chikezie Om

eAPPENDIX II QUESTIONNAIRE SCHEDULE

Instruction: Please, you are required to provide the correct answer to these questions, to the

best of your knowledge. Mark as shown here [V] to all questions below:

SECTION A: SOCIO-DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS

1. Sex: (a) Male [ ] (b) Female [ ]

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6

2. Age (a) 18 - 20 years [ ] (b) 21-23 years [ ] (c) 23-25 years (d) 26 and above [ ]

3. Marital Status (a) Single [ ] (b) Married [ ] (c) Widowed [ ] (d) Separated [ ]

(e) Divorced [ ]

4. Education (a) FSLC [ ] .(b) SSCE/WAEC [ ] (c) OND/NCE [ ] (d) B.Sc/HND [ ]

(e) M.Sc [ ] (f) others specify

5. Occupation (a) Sales persons [ ] (b) Office Attendants [ ] (c) Artisans [ ]

(d) Students [ ] (e) Applicant [ ] (f) Others specify

6. Religion (a) Christianity [ ] (b) African Traditional Religion [ J (c) Islam [ ]

(d) Others specify

7. State of Origin. Please fill.

SECTION B: THEMATIC QUESTIONS

8. What are the factors responsible for low wage earning in Abakaliki metropolis?

(a) Inflation [ ] (b) Unemployment [ ] (c) Inadequate minimum wage [

] (d)Lack of

vocational skill [ ] (e) lack of education [ ] (f) others state.

9. What are the survival strategies adopted by marginal wage earners in Abakaliki

metropolis? (a) squatting with friends or family members [ ] (b) paying for one

apartment [ ] (c) waking up early and trekking to work [ ] (d) combining rent fee with friends [ ]

(e) living with parents [ ]

10. What category of people are mainly engaged in marginal wage earning?

11. What sex is predominant in marginal wage earning (a) Male [ ] (b) Female [ ]

12. What is the educational status of marginal wage earners? (a) No formal education [ ]

(b) First School Leaving Certificate [ ] (c) Secondary School [ ] (d)Tertiary institution [ ]
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13. How much do marginal wage earners earn in a month?

14. What kind of services do marginal wage earners provide?

15. Who are the major employers of marginal wage earners? (a) Private [ ]

(b) Government [ ]

16. How secure is the job of marginal wage earners? (a) No job security [ ] (b) Job

Security [ ] (c) others.

17. What are the problems of marginal wage earners in Abakaliki? (a) Poor accommodation [ ]
(b) Non affordability of good hospital [ ] (c) Inadequate provision of basic needs [ ]

(d) Hunger [ ] (e) Others specify.

18. How can the lot of marginal wage earners be improved in Abakaliki? (a) Building free apartment for

workers [ ] (b) Government in collaboration with private organization implementing minimum wage of marginal

wage earners [ ] (c) Employers providing free transportation for workers [ ] (d) Marginal wage earners engaging

in extra jobs.