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Earnings from commercial motorcycle operations in Ilorin, Nigeria: A Study on Determinants
Abstract
The use of motorcycles for urban passenger transport in Nigeria popularly called okada is a source of employment and earnings to operators. Studies have attested to this but no attempt has been made to empirically examine the determinants of earnings in this informal transport operation in Nigeria. This paper, using human capital earning function analysis, shows that apart from the core determinant, which is patronage index, others such as experience, mode of work, ownership status and number plates were found to be significant determinants of earnings in commercial motorcycle transport. Formal education was found not to be a significant variable, which further confirms the fact that in some activities in the informal sector, formal education does not affect earnings. The core determinant i.e. patronage index explained over 75 percent of the variations in earnings. Therefore for earnings to be improved upon, constraints to the patronage index must be addressed. These constraints, which require attention, are bad roads, police extortion, high running costs and harassment from other motorized traffic.
KEY DESCRIPTORS: Informal transport; motorcycle; earnings; patronage; Nigeria.
