A widespread phenomenon in many cities in developing countries is using hom
es not only for shelter, but also for income-generation through informal-se
ctor activities. Using survey data from Kumasi, Ghana, I examine the charac
teristics of households that undertake such economic activities compared to
those that do not, Descriptive analyses of socioeconomic characteristics,
migration history, housing and location indicators, and tenure are presente
d. Discriminant analysis comparing the two groups is used to summarize the
findings. Results show that female-headed households and larger households
with older but less educated heads use their housing for income-generation
more than other households. Migration history also distinguishes the two gr
oups, but not in the expected direction. None of the location characteristi
cs examined discriminate between the groups. Households that use their home
for income-generation occupy more rooms, but their housing quality is not
as good as the housing quality of other households. (C) 1998 Elsevier Scien
ce Ltd. All rights reserved.