An investigation of informal employment and household welfare in Asaba Local Government Area, Delta State
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Background of the study
Informal employment is a prevalent feature in many developing economies, significantly affecting household welfare and economic stability. In Asaba Local Government Area, Delta State, a large segment of the population depends on informal work for their livelihood. This sector, characterized by its lack of formal contracts, social security, and regulated wages, has both positive and negative implications for household welfare (Okoro, 2023). On one hand, informal employment provides flexibility and immediate income, allowing households to cope with economic uncertainties. On the other hand, the absence of formal safeguards exposes workers to job insecurity, exploitation, and erratic income streams, which can adversely affect living standards (Afolabi, 2024). This study investigates the impact of informal employment on household welfare by analyzing income stability, access to social services, and overall quality of life. It employs both quantitative household surveys and qualitative interviews to capture the diverse experiences of workers in the informal sector. The research aims to identify the factors that influence the benefits and drawbacks of informal employment, thereby offering insights for policy interventions designed to improve welfare outcomes (Ibrahim, 2025). This comprehensive analysis will contribute to the broader discourse on employment, poverty alleviation, and sustainable economic development in the region.
Statement of the problem
Household welfare in Asaba is significantly affected by the predominance of informal employment. Many workers face precarious income conditions, which result in poor living standards and limited access to healthcare and education (Chukwu, 2023). The irregular nature of informal work means that households often lack the stability needed for long-term financial planning and investment in human capital. Moreover, the absence of social security measures leaves workers vulnerable to economic shocks and exploitation. This study aims to investigate the extent to which informal employment influences household welfare, addressing the challenges that arise from the lack of formal employment protections and proposing solutions to mitigate these adverse effects (Obi, 2024).
Objectives of the study:
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To assess the impact of informal employment on household welfare in Asaba.
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To identify the challenges faced by households dependent on informal work.
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To propose strategies for improving welfare outcomes for informally employed workers.
Research questions:
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How does informal employment affect household income and stability?
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What are the major challenges faced by households engaged in informal work?
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What policy measures can improve household welfare in this context?
Research Hypotheses:
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Informal employment significantly reduces household welfare.
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Lack of social security exacerbates the negative effects of informal employment.
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Policy interventions can improve the living standards of households relying on informal work.
Significance of the study
This study is significant as it highlights the critical relationship between informal employment and household welfare in Asaba. The insights obtained will assist policymakers in designing social safety nets and employment policies that protect informal workers. By addressing the inherent challenges of the informal sector, the research aims to improve overall living standards and contribute to sustainable economic development in the region (Eze, 2023).
Scope and limitations of the study:
The study is limited to investigating informal employment and its impact on household welfare within Asaba Local Government Area, Delta State, and does not extend to other regions.
Definitions of terms:
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Informal employment: Work that is not regulated by formal contracts or social security systems.
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Household welfare: The overall well-being and quality of life of a household.
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Economic stability: The consistency of income and financial security within a household.
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