Getting stuck,falling behind or moving forward: Rural livelihood movements and persistence in Nepal |
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| Institution: | 1. Department of Agricultural Economics, IFAPA – Andalusian Institute of Agricultural Research and Training, Centro Alameda del Obispo, Apartado 3092, 14080 Córdoba, Spain;2. Department of Agricultural Economics, University of Córdoba, Campus Rabanales, Ctra. N-IV km 396, 14014 Córdoba, Spain;3. Department of Agricultural Economics, IFAPA - Andalusian Institute of Agricultural Research and Training, Centro Camino de Purchil, Apartado 18004 Granada, Spain;1. University of Granada, Dept. of Quantitative Methods for Economics and Business, Sciences and Economics Faculty, Campus La Cartuja s/n, 18071, Granada, Spain;2. University of Almería, Dept. of Applied Economic, Sciences and Economics Faculty, Ctra. de Sacramento s/n, 04120, La Cañada de San Urbano, Almería, Spain;3. University of Granada, Dept. of Mathematics Didactic, Education Sciences Faculty, Campus La Cartuja s/n, 18071, Granada, Spain;1. School of Agriculture and Environment, The University of Western Australia, Perth, Western Australia, 6009, Australia;2. Faculty of Forestry, Universitas Gadjah Mada, Yogyakarta, Indonesia;3. Centre for Applied Psychology, The University of Canberra, ACT, Australia;4. The Fenner School of Environment & Society, The Australian National University, ACT, Australia;1. Environmental Geography Group, Department of Earth Sciences, Vrije Universiteit Amsterdam, De Boelelaan 1087, 1081 HV Amsterdam, The Netherlands;2. University of the Aegean, Department of Geography, University Hill, 81100 Mytilene, Greece;3. Swiss Federal Research Institute WSL, Research Unit Landscape Dynamics, Zürcherstrasse 111, CH-8903 Birmensdorf, Switzerland;1. Department of Forestry and Environmental Science, School of Agriculture and Mineral Sciences, Shahjalal University of Science and Technology, Sylhet-3114, Bangladesh;2. Friedrich-Alexander-University Erlangen-Nürnberg (FAU), Institute of Geography, Wetterkreuz 15, 91058, Erlangen, Germany;1. Department of Land Management, Zhejiang University, Hangzhou, PR China;2. School of Public Administration, Zhejiang University of Finance & Economics, Hangzhou, PR China |
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| Abstract: | Research on household livelihood dynamics is central to rural poverty reduction. In this paper, we adopt a three-wave panel dataset to explore the persistence of and transitions in household livelihoods in three districts of Nepal using duration and dynamic probit models. The results demonstrate that the livelihood strategies of rural households are dynamic: approximately 16 per cent of the sample households transitioned up to high-remunerative livelihood strategies, 10 per cent of the households shifted down to either low- or medium-remunerative livelihood strategies, and 69 per cent remained trapped in low-remunerative livelihood strategies. The major upward transition occurred from medium-remunerative strategies to high-remunerative strategies (14 per cent). Overall, 70 per cent of the households persisted in one of the three livelihood strategies, and the remaining 30 per cent changed their strategy at least once. This dynamic is associated with the households’ duration in a particular livelihood strategy and the various characteristics of households and household heads. Understanding livelihood movement, livelihood persistence and the associated covariates and targeting the poor on this basis is crucial to combating rural poverty and dismantling poverty traps. To this end, the present study suggests (i) strengthening physical and financial asset endowments to address low-remunerative strategies, (ii) improving infrastructure connectivity, particularly in remote and inaccessible areas, (iii) insuring against shocks, iv) enhancing opportunities for generating remittances and enabling petty trade, and (v) supporting the establishment of business ventures. |
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| Keywords: | Rural livelihoods Assets Income Dynamics Duration model Dynamic probit model |
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