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The urban informal sector jobs can be characterized by low skill, low productivity, self-

employment, lack of complementary inputs particularly capital, small scale measured in terms of
sales assets, employment etc and favored by recent migrants’ role of urban informal sector.
First, jobs in the informal sector are characterized by low skill which is related to low
productivity, since in this sector a large number of small-scale production and service activities
are individually or family-owned where it requires only simple and low skill and constitute a low
productivity.
Third is self-employment, informal sector tends to operate like monopolistically competitive firms
with ease of entry since they have less formal education so they are usually self-employed
workers and as a result income in this sector tend to be lower.
Next, small scale measured in terms of assets, employment and etc. Workers in the informal
sector do not enjoy the measure of protection afforded by the formal modern sector in terms of
job security and decent working conditions. In addition, although many members of the
household often work very long hours, still a large fraction inhabits a small cinder-block houses
that they themselves have built in squatter settlements, which generally lack minimal public
services such as electricity, water, transportation, educational and health services.
Lastly, favored by recent migrants. Many workers entering this sector are recent migrants from
rural areas that unable to find employment in the formal sector. Their motivation is often to
obtain sufficient income for survival, relying on their own indigenous resources to create work.

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