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Combining Household Income and Asset Data to Identify Livelihood Strategies and Their Dynamics

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  • Solomon Zena Walelign
  • Mariève Pouliot
  • Helle Overgaard Larsen
  • Carsten Smith-Hall

Abstract

Current approaches to identifying and describing rural livelihood strategies, and household movements between strategies over time, in developing countries are imprecise. Here we: (i) present a new statistical quantitative approach combining income and asset data to identify household activity choice variables, characterise livelihood strategy clusters, and analyse movements between strategies, and (ii) apply the approach using an environmentally-augmented three-wave household (n = 427) level panel dataset from Nepal. Combining income and asset data provides a better understanding of livelihood strategies and household movements between strategies over time than using only income or asset data. Most households changed livelihood strategy at least once over the two three-year periods. A common pathway out of poverty included an intermediate step during which households accumulate assets through farming, petty trading, and migratory work.

Suggested Citation

  • Solomon Zena Walelign & Mariève Pouliot & Helle Overgaard Larsen & Carsten Smith-Hall, 2017. "Combining Household Income and Asset Data to Identify Livelihood Strategies and Their Dynamics," Journal of Development Studies, Taylor & Francis Journals, vol. 53(6), pages 769-787, June.
    • Handle: RePEc:taf:jdevst:v:53:y:2017:i:6:p:769-787
    DOI: 10.1080/00220388.2016.1199856
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    References listed on IDEAS

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    1. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966.
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    Cited by:

    1. Rui Sun & Jianing Mi & Shu Cao & Tianyi Zhang, 2021. "Trends and Determinants of Income-Oriented Livelihood Transitions in Rural China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(2), pages 601-624, June.
    2. Zhang, Jian & Mishra, Ashok K. & Zhu, Peixin, 2019. "Identifying livelihood strategies and transitions in rural China: Is land holding an obstacle?," Land Use Policy, Elsevier, vol. 80(C), pages 107-117.
    3. Zhang, Yongchao & Torre, André & Ehrlich, Marianne, 2023. "The impact of Chinese government promoted homestead transfer on labor migration and household's well-being: A study in three rural areas," Journal of Asian Economics, Elsevier, vol. 86(C).
    4. Gil, J.M. & Diaz-Montenegro, J. & Varela, E., 2018. "A Bias-Adjusted Three-Step approach for analysing the livelihood strategies and the asset mix of cacao producers in Ecuador," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277215, International Association of Agricultural Economists.
    5. Barad, Richard & Fletcher, Erin K. & Hillbruner, Chris, 2020. "Leveraging existing household survey data to map livelihoods in Nigeria," World Development, Elsevier, vol. 126(C).
    6. Fang Wang & Jingyi Mao & Yafu Liu & Qihua Cai, 2023. "Influencing Mechanism of Rural Households’ Livelihood Capital on Entrepreneurial Behavior: Evidence from the CFPS," Agriculture, MDPI, vol. 13(9), pages 1-22, September.
    7. Jinhai Ma & Jie Zhang & Li Li & Zhanjing Zeng & Jingrong Sun & Qilou (Bill) Zhou & Yuling Zhang, 2018. "Study on Livelihood Assets-Based Spatial Differentiation of the Income of Natural Tourism Communities," Sustainability, MDPI, vol. 10(2), pages 1-20, January.
    8. Wenqiang Ding & Saheed Olaide Jimoh & Yulu Hou & Xiangyang Hou & Weiguo Zhang, 2018. "Influence of Livelihood Capitals on Livelihood Strategies of Herdsmen in Inner Mongolia, China," Sustainability, MDPI, vol. 10(9), pages 1-17, September.
    9. Sagarika Dey, 2022. "Structure and dynamics of livelihoods in rural India: A panel data analysis," Poverty & Public Policy, John Wiley & Sons, vol. 14(3), pages 307-334, September.
    10. Helmy, Imane, 2020. "Livelihood Diversification Strategies: Resisting Vulnerability in Egypt," GLO Discussion Paper Series 441, Global Labor Organization (GLO).
    11. Specht, Gabriel & Nuppenau, Ernst-August & Domptail, Stephanie, 2021. "Failing Synergies Among Public Programs: The Economy-Wide Effects of One Rural Credit and Two Social Protection Programs Simultaneously Implemented in Southern Brazil," 2021 Conference, August 17-31, 2021, Virtual 315012, International Association of Agricultural Economists.
    12. Jiao, Xi & Walelign, Solomon Zena & Nielsen, Martin Reinhardt & Smith-Hall, Carsten, 2019. "Protected areas, household environmental incomes and well-being in the Greater Serengeti-Mara Ecosystem," Forest Policy and Economics, Elsevier, vol. 106(C), pages 1-1.
    13. Ashish Aman Sinha & Hari Charan Behera & Ajit Kumar Behura & Amiya Kumar Sahoo & Utpal Kumar De, 2021. "Livelihood Assets and Income Generating Activities: A Comparative Analysis in the Scheduled and Non-Scheduled Areas of Jharkhand," Indian Journal of Human Development, , vol. 15(3), pages 443-467, December.
    14. Jin, Shaoze & Min, Shi & Huang, Jikun & Waibel, Hermann, 2021. "Falling price induced diversification strategies and rural inequality: Evidence of smallholder rubber farmers," World Development, Elsevier, vol. 146(C).
    15. Walelign, Solomon Zena & Lujala, Päivi, 2022. "A place-based framework for assessing resettlement capacity in the context of displacement induced by climate change," World Development, Elsevier, vol. 151(C).
    16. Liu, Wei & Li, Jie & Xu, Jie, 2020. "Impact of the ecological resettlement program in southern Shaanxi Province, China on households' livelihood strategies," Forest Policy and Economics, Elsevier, vol. 120(C).
    17. Jue Wang & Haiwei Jiang & Yuan He, 2023. "Determinants of Smallholder Farmers’ Income-Generating Activities in Rubber Monoculture Dominated Region Based on Sustainable Livelihood Framework," Land, MDPI, vol. 12(2), pages 1-17, January.
    18. Jude Ndzifon Kimengsi & Mukong Alfred Kechia & Balgah Roland Azibo & Jürgen Pretzsch & Jude Kwei, 2019. "Households’ Assets Dynamics and Ecotourism Choices in the Western Highlands of Cameroon," Sustainability, MDPI, vol. 11(7), pages 1-16, March.

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