Data Appendix Available Online A data appendix to replicate main results is available in the online version of this article.
Quantifying rural livelihood strategies in developing countries using an activity choice approach
Version of Record online: 20 NOV 2012
© 2012 International Association of Agricultural Economists
Volume 44, Issue 1, pages 57–71, January 2013
How to Cite
Nielsen, Ø. J., Rayamajhi, S., Uberhuaga, P., Meilby, H. and Smith-Hall, C. (2013), Quantifying rural livelihood strategies in developing countries using an activity choice approach. Agricultural Economics, 44: 57–71. doi: 10.1111/j.1574-0862.2012.00632.x
- Issue online: 8 JAN 2013
- Version of Record online: 20 NOV 2012
- Received 5 November 2011; received in revised form 6 September 2012; accepted 7 September 2012
- Latent class cluster analysis;
- Cross-country comparison;
- Environmental income;
- Household asset endowments
This article uses a quantitative activity choice approach, based on identification of activity variables and application of latent class cluster analysis, to identify five major rural livelihood strategies pursued by households (n= 576) in Bolivia, Nepal, and Mozambique. Income sources and welfare outcomes are compared across strategies and household differences in asset holdings are analyzed using multinomial logit regression. Findings reveal that income diversification is the norm, that a higher degree of specialization does not characterize more remunerative livelihood strategies, that nonfarm income significantly contributes to higher income earnings, that environmental reliance does not vary across strategies, and that small-scale farmers are the largest and poorest livelihood group. Some livelihood strategies are superior to all other strategies in terms of income earned; access to more remunerative livelihood strategies is determined by land ownership, education, and ethnic affiliation. Finally, the article also highlights that additional work is required to determine the most suitable methods for livelihood strategy identification.