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Determinants of livelihood diversification among Rwandan households: The role of education, ICT and urbanization
School of Economics, University of Rwanda, Kigali, Rwanda.
Jönköping University, Jönköping International Business School, JIBS, Economics. Jönköping University, Jönköping International Business School, JIBS, Centre for Entrepreneurship and Spatial Economics (CEnSE).ORCID iD: 0000-0002-5664-3115
2018 (English)In: Rwanda Handbook of Economic and Social Policy: Volume 1 / [ed] A. Heshmati, Jönköping: Jönköping University, Jönköping International Business School , 2018, p. 377-395Chapter in book (Refereed)
Abstract [en]

Rural households in many different contexts have been found to diversify their income sources allowing them to spread their risks and to smoothen consumption. Generating diversified incomes for a majority of the rural poor is an essential component of a successful rural development strategy. This paper identifies the determinants of income diversification among Rwandan households using unique panel data obtained from the Integrated Households Living Conditions Surveys of 2011 and 2014. It applies a binary logit panel model to a representative sample of 3,839 households across Rwanda controlling for latent household specific factors. It also conducts a Hausman test the results of which show that the random effect estimates were more efficient than fixed effect estimates (Chi2=20.73 and Prob>Chi2=0.1891). The results reveal that education, access to ICT and urban areas were among the most important factors that influenced livelihood diversification given that p <0.05. We also found that other measures of household specific factors were important (for example, the age and gender of the household head along with asset endowments). From these results, it is recommended that professional training, internet access through phones and wireless and urbanization should be enhanced so as to enable households to diversify their sources of income and thus improve food security for their family members.

Place, publisher, year, edition, pages
Jönköping: Jönköping University, Jönköping International Business School , 2018. p. 377-395
Series
JIBS Research Reports, ISSN 1403-0462 ; 2017-2
Keywords [en]
Non-farm income, livelihood diversification, random effects logistic regression, Rwanda
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-38518ISBN: 978-91-86345-78-5 (print)OAI: oai:DiVA.org:hj-38518DiVA, id: diva2:1174069
Available from: 2018-01-15 Created: 2018-01-15 Last updated: 2018-01-15Bibliographically approved

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Nilsson, Pia

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