Factors influencing household income in Urban slum settlements.

Abstract

This research project was intended to assess the factors influencing household income in urban slum settlements, a case study of Bwaise in Kawempe Division. The research findings were based on a sample size of 100, which was determined using Cochran’s formula (1963) at 5% level of precision. Face to face interviews were conducted in Bwaise with a well-designed guide in KOBO collect of all the predetermined questions. Data was then downloaded to Excel and cleaned for analysis. It was therefore imported to STATA for analysis and inference was made at three stages; Univariate, bivariate and Multivariate. The results showed that household size, Education level, marital status and source of income significantly influence household income in Bwaise at 5% significance level since their respective probability values are less than 0.05 in a joint analysis. Particularly, household income increases as household size increases by 168,793.7 shillings keeping other factors constant (p value=0.000). More so, highly educated household heads have more household income than uneducated household heads by 1,483,683 shillings keeping other factors constant (p value=0.000). Also cohabiting household heads have a less household income than married household heads by 637,900 shillings respectively keeping other factors constant (p value= 0.028). Lastly, household heads whose source of income is welfare payments have less household income than those with salary and wages by 995,626 shillings other factors kept constant (P value=0.013). Therefore, the study recommended that small families should increase on their household size as it increases wealth but should not exceed the standard household size of 4.5 as it may increase the dependence ratio and reduce income. Also, the government should make higher education accessible and affordable by all kinds of income earners as it significantly increases household income in Bwaise. More so, the study recommended that cohabiting partners should switch to marriage to increase on their income because married household heads have higher incomes. Finally, households should be engaged in paid work than waiting for welfare payments as it can increase household income through wages and salaries hence better living.