| Abstract | A great deal of attention in recent years has been given to the informal sector in the Third World cities. This has however mostly been limited to the general development issues and policies. Although the wider scope of employment creation has been a dominant feature in the on-going debate on the informal sector, the housing problem of the people working in the sector seems still out of attention. This may in part be a reflection of non-realization of the crucial role of housing as a facilitator of income earning endeavors. But more importantly, as this study finds, it is a reflection of unwillingness of the policy makers in accepting the activities of the informal sector as a reliable collateral. Indeed the absence of guarantee is noted to be the major obstacle for encompassing the informal sector workers to the official housing program. This study shows that the housing program need to be more specifically targeted than what is the practice now . Even low income people is too broad a group for housing purposes. It need to be as specific as possible. The housing for the informal sector workers, as taken up here, is an example of such specificity. The major objective of this study has been to demonstrate the above need of reorientation in policy approach. To attain this goal, the housing affordability of the informal sector workers is studied here to find out the alternative solutions for the housing problem which is particularly severe for the informal sector workers. Housing priorities, job stability, and residential characteristics are considered and given due emphasis in outlining the alternative housing schemes for these workers. The data were obtained through a questionnaire survey, conducted in 1988, encompassing 205 sampled enterprises of three major types of activity , and 10 "becak" (rickshaw,pedicab) drivers. The survey generated a wide variety of data on the migratory and demographic characteristics, employment status, skill level, reasons for entering the informal sector activity, ownership of enterprise, job history, job perception, capital, profile of income and expenditure, housing status, housing history, housing accessibility, housing condition, housing affordability and priorities of the informal sector workers. In general, the analysis of these data provides the following conclusions. Evidence on the job stability shows that the informal sector employment is not a temporary source of income. Forty seven per cent of the participants had been operating the enterprises for more than five years. Their ability to pay is good enough to meet the monthly repayment which is required by the PERUMNAS housing. There is strong evidence suggesting that the informal sector workers have no access to formal housing provisions: 97 per cent of the workers have never applied to the PERUMNAS housing. Of those who have ever applied, 56 per cent got no reply, 22 per cent were still waiting, 11 per cent were told that they were late, and the rest had no money as down payment. It becomes clear from the transitional accommodations are informal sector workers. These housing, staying with relatives renting one house. survey that temporary and common features among the accommodations include rental or friends, and sharing in On the question of housing priorities, the following variability is observed: (1) 'Job proximity' is essential for the middle income group, "competitors", and "network extenders"; ( 2 ) 'Tenure' is essential for the low income group, "successors", and "consolidators"; (3) 'House price' is essential for the middle income group and "adaptors"; <4> ·Social relationship' is essential for the middle income group, "adaptors", and "foot holders"; (5) 'Amenities' is essential for "identity seekers" and "steaders". Overall, the analysis leads to an optimistic conclusion that the provision of official housing program for the informal sector workers is desirable and supportable. Three specific proposals made are <1> provision of new settlements, targeted for "consolidators", "steaders", "successors", and " identity seekers " ; <2 > improvement of existing settlements of the informal sector workers, intended for "network extenders" and "competitors"; and ( 3) provision of transitional settlements for " footholders" and " adaptors " . |