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Determinants of Livelihood Choices


  • Sanzidur Rahman
  • Shaheen Akter


The study identifies socio-economic determinants of livelihood choices of rural households in Bangladesh (4,195 households from 139 villages) by applying a multinomial logit model of occupational choice and a multivariate Tobit model that allows for jointness in decision making. Results reveal that households choose multiple livelihood options. A number of socio-economic factors and resources at the household level as well as the state of rural infrastructure significantly determine households’ livelihood choice. Overall, resource-rich and educated households engage in diversified livelihoods and rural infrastructure promotes such diversification. Female-headed households fail to participate in any of the livelihood categories and consequently earn significantly lower income. Policy implications include investment in rural infrastructure, irrigation, rural electrification, education, livestock resources, as well as targeting of female-headed households, for example, creation of a hired labour market and skills/education programmes for females.

Suggested Citation

  • Sanzidur Rahman & Shaheen Akter, 2014. "Determinants of Livelihood Choices," Journal of South Asian Development, , vol. 9(3), pages 287-308, December.
  • Handle: RePEc:sae:soudev:v:9:y:2014:i:3:p:287-308

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    Cited by:

    1. VAN DEN BROECK, Goedele & MAERTENS, Miet, 2016. "Moving Up or Moving Out? Insights on Rural Development and Poverty Reduction in Senegal," Working Papers 242367, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    2. Sanzidur Rahman & Chidiebere Daniel Chima, 2016. "Determinants of Food Crop Diversity and Profitability in Southeastern Nigeria: A Multivariate Tobit Approach," Agriculture, MDPI, Open Access Journal, vol. 6(2), pages 1-14, April.
    3. William Adzawla & Abou Kane, 2018. "Gender Perspectives Of The Determinants Of Climate Adaptation: The Case Of Livelihood Diversification In Northern Ghana
      [Une Approche Genrée des déterminants de l'adaptation au climat: le cas de la
      ," Post-Print hal-01929070, HAL.


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