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Determinants of Livelihood Choices

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  • Sanzidur Rahman
  • Shaheen Akter

Abstract

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
    DOI: 10.1177/0973174114549101
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    3. 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.
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    5. Anik, Asif Reza & Eory, Vera & Begho, Toritseju & Rahman, Md. Mizanur, 2023. "Determinants of nitrogen use efficiency and gaseous emissions assessed from farm survey: A case of wheat in Bangladesh," Agricultural Systems, Elsevier, vol. 206(C).
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    7. Sarker, Md Nazirul Islam & Wu, Min & Alam, GM Monirul & Shouse, Roger C, 2020. "Livelihood diversification in rural Bangladesh: Patterns and determinants in disaster prone riverine islands," Land Use Policy, Elsevier, vol. 96(C).
    8. Wenfeng Zhou & Shili Guo & Xin Deng & Dingde Xu, 2021. "Livelihood resilience and strategies of rural residents of earthquake-threatened areas in Sichuan Province, China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 106(1), pages 255-275, March.
    9. Pham Bao Duong & Pham Tien Thanh & Tihomir Ancev, 2021. "Impacts of off‐farm employment on welfare, food security and poverty: Evidence from rural Vietnam," International Journal of Social Welfare, John Wiley & Sons, vol. 30(1), pages 84-96, January.
    10. Baah-Ennumh, Theresa Yaaba & Forson, Joseph Ato, 2015. "The Impact of Artisanal Small-Scale Mining on Sustainable Livelihoods: A Case Study of Mining Communities in the Tarkwa-Nsuaem Municipality of Ghana," MPRA Paper 102491, University Library of Munich, Germany, revised 15 Sep 2016.
    11. Sapkota, Jeet Bahadur, 2018. "Access to infrastructure and human wellbeing: evidence from rural Nepal," MPRA Paper 106094, University Library of Munich, Germany.
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