Linking human capabilities with livelihood strategies to speed poverty reduction: Evidence from Rwanda

Acute land scarcity in Rwanda limits poor people’s ability to accumulate and move out of poverty. Options for livelihood diversification are restricted by the absence of a vibrant and job-rich non-farm rural economy, and by high rural–urban inequality which makes the urban economy somewhat inaccessible, particularly given the regulated nature of the urban informal sector, limiting opportunities for migration. Competition for employment is made more challenging by low capabilities, which place high-return jobs beyond reach for many poor people. This paper relies on mixed methods research to explore a land-education-jobs nexus and identify the linked human capital and livelihood determinants of poverty escapes to understand the factors slowing poverty reduction in Rwanda. The quantitative analysis uses three waves of nationally representative panel data between 2010/11 and 2016/17 to investigate correlates of poverty trajectories. The qualitative analysis uses content analysis to explore life histories, focus group discussions and key informant interviews from 14 study sites to explore factors driving change in livelihoods and well-being.