Abstract:
This study aims at (1) finding out the livelihood capacity of workers in informal sector; (2) analyzing factors affecting the livelihood capacity of workers in informal sector based on socio-demographic and nondemographic characteristics; (3) examining success levels of workers in informal sector in Palu Municipality; and (4) identifying a model as the basis of developing the livelihood capacity of workers in informal sector in Palu Municipality. The study used a quantitative approach with a survey method. Observation was carried out on 325 actors in informal sector s that were clustered into five, i.e. agriculture, services, small industry, trade and foods stall. The data collected were analyzed in accordance with the aims of the study by some analysis techniques, i.e. a descriptive analysis in forms of percentage, frequency table, cross-tabulation and pentagon radar chart and quantitative analyses, i.e. Analysis of Variance (Anova) and a multiple linear regression. Based on the results of the study, it can be concluded that the majority of actors in informal sector in Palu Municipality have worked in trade sector and been from Javanese ethnic. The livelihood capacity of workers in informal sector s was not evenly distributed, where peoples in Kailu tribe as the indigenous people in Palu Municipality were considered as lower than other tribes. Such livelihood capacity of workers in informal sector was affected by socio-demographic and non-demographic characteristics. However, there was no effect of all the socio-demographic characteristics, including gender, age, education, family members, and duration of work on the livelihood capacity of workers in informal sector. Meanwhile, the non-demographic characteristics, such as resource mobilization, cultural capacity, social capacity and information literacy, affected the capacity of workers in informal sector. In view of income, success among workers in informal sector could be categorized as high enough. The model developed was the training and the establishment of “Smart Park” for low-income workers. The actors in informal sector were categorized into still-small workers and sufficiently developing ones. There were various trainings in the Smart Park program, such as business management training, product marketing training, cake making training, snack making training, foods cooking training, laundry service training, mechanic work training, beauty salon training, rental service training, and so on to make the workers professional in their respective informal sector s.
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