An Empirical Investigation of the Factors Influencing Formal and Informal Employment in the City of Asmara

  • Fitsum Ghebregiorgis Ghebremeskel College of Business and Economics, Eritrea
  • Habteab Tekie Mihreteab College of Business and Economics, Eritrea
Keywords: formal, informal, employment, developing country, Eritrea


This study investigates the factors influencing formal and informal labour market in Asmara, the capital city of Eritrea. The findings reveal that variables such as age, gender, education and birth place influence formal and informal labor market of the city. The chances for young people getting jobs in formal are low relative to older people. Higher educational level is related to securing jobs in the formal sector. Regarding gender males have more chances in the formal sector than females. People from Maekel/Central Region (townships surrounding Asmara) have higher chances to engage in self-employment. Generally, the results reveal that the labor market in Asmara show varied characteristics.

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