DETERMINANTS OF WORKERS WAGE IN PRIVATE INVESTMENTS AND PERFORMANCE OF INVESTORS IN URBAN AREAS OF SOUTHERN ETHIOPIA: IN CASE OF HADIYA ZONE, HOSANNA TOWN

Abstract

This study aims to investigate the determinants of workers wage in private investments and performance of investors in urban areas of southern Ethiopia by taking Hadiya zone, Hosanna town as a case study. In this study both probability and non- probability sampling technique was used to select sample respondents. Hence, this study used a multi-stage sampling technique, in the first stage, Hosanna town was purposively selected. In the second stage, three investment area namely Lemmo, Sorro and Gibe wereda were selected by using stratified and simple random sampling method. Lastly, from 172 private investors was select the sample of 63 investor and 205 workers of private firms out of 554 workers. The study used both descriptive analysis and Econometric analysis of Multiple Linear regression model. The findings of the study indicate that Market opportunity out of Hosanna town, Access to infrastructure, Access to land, Access to finance and years of tax exemption from profit tax were statistically significant and had positive relation with the income of private investor. The rest of variables bureaucratic red tape were statistically significant, Problem faced which related during the production process were statistically insignificant and had negative relation with the income of private investor in the analysis. Thus, working hour of workers per day in private investments, additional income from part-time (out of wage), experience of working in private firms were statistically significant and had positive relationship with the income of worker in private investment in the analysis. The rest of two variables access to training for worker number of worker in the department was statistically significant and had negative impact on the income of worker in private investment in the analysis. In addition to this the private investment has its own positive outcome on the local economy in terms of creating employment opportunity and market stability. Thus, in order to encourage private investment, the government should introduce practical land development and administration procedure, accessing land for strengthen the performance of private investment.