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Analysis on returns to levels of education and challenges faced by the motor spare parts urban self employed in kisii county, Kenya

Author: 
Eliud Nyakundi, Prof. Enose M.W Simatwa and Prof Theodore. M. Ayodo
Subject Area: 
Physical Sciences and Engineering
Abstract: 

The self-employment sector provides an avenue for workers to earn a living.. There exists earning differentials among workers with various levels of education worldwide In Kisii county there are worker entering into employment with various levels of education. The return to the self-employed varies. The returns to the self-employed are important in determing individual and government investment in education. The purpose of the study was to establish education returns spare parts self-employment activities in urban Kisii County. The study objectives were to; determine the returns to education of various levels of education of the self-employed in motor spare parts industry, determine the challenges facing the self-employed, determine effectiveness of intervention measures by Kenya government to assist the self-employed in their work. The study used descriptive and correlation design. Human capital theory was used. The population of the study was 11240.That is in computer service industry 6400 and spare parts 4840 workers. The study used Fisher’s model to derive a sample of 166 spare parts self-employed workers. Questionnaire and interview schedules were used to collect data for the study. Quantitative data was analyzed using descriptive statistics and regression analysis. Qualitative data was transcribed and analyzed in emergent themes and sub-themes. Government intervention was not effective in the provision of: market stalls, loans and market for finished products, but effective in provision of: security, electricity and infrastructure. In spare parts the results showed that on average; respondents with KC.P.E earned Ksh 16, 786.3636, K.C.SE earned 16855.8140; certificate earned 16825.9259 qualifications earned nearly similar amount of money. Diploma graduates earnings were 22584.2105 and bachelors earned 29,150.000. Analysis of pearson’s r indicate; For k.cpe was 0.617, k.c.se 0.009, certificate 0.130, diploma 0.129 and bachelors 0.297. The Pearson’s r2 results were: kcpe was 0.413, kcse 0.011, certificate 0.016, diploma 0.038 and degree 0.002. The adjusted R results were: kcpe 0.373. kcse 0.002, certificate 0.002, diploma 0.001 and degree 0.075. The ANOVA results were: Forkcpe(F(1,20)12.282, P=0.002), kcse (F(1,84)0,007, P=0.935), certificate was (F(1,25,) 0.428,P=0.519), diploma was (F(1,17)1.290, P=0.597) and bachelors degree was(F(1,10)0.0.964,P=0.349).The Pearson’s r results were’ kcpe 0.643, kcse 0.104, certificate 0.128, diploma 0.195 and bachelors degree 0.045. The Pearson’s r2results were: kcpe was 0.413, kcse 0.011, certificate 0.016, diploma 0.038 and degree 0.002.The r adjusted results were :kcpe 0.373. kcse 0.002, certificate 0.002, diploma 0.001 and degree 0.075. The ANOVA results were computed as: For kcpe (F(1,15)10.572,P=0.005), kcse was (F(1,70)0,761, P=0.386), certificate was (F(1,52,)0.868, P=0.356), diploma was (F(1,28)1.031, P=0.319 and bachelor results were (F(1,13)0.006,P=0.874). The model summary indicated that the independent variables (K.C.P.E, K.C.S.E, Certificate, Diploma and Undergraduate levels of education) explained up to 22.6% of the variation of average earnings 77.4% remained unexplained. The study concluded that; there was a significant and positive association between returns to education and increasing level of education, and lack of capital was a challenge to the self-employed. The study recommended government intervention in funding the self-employed in their activities, reduced electricity charges and blackouts. The study is important in formulation of education programmes relevant to the self-employed and government intervention in support of the self-employed.

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