Poverty reduction and economic livelihood mobility in rural Sub‐Saharan Africa

Abstract

This article uses household panel data for six countries in rural sub-Saharan Africa to study the dynamics of off-farm diversification rather than the ‘static’ analyses common in the related literature. It identifies drivers of economic livelihood mobility and implications for poverty reduction. The results show that on-farm specialization imposes considerable welfare costs on rural households. In most of the countries, income poverty reduction was highest for households that became diversified and lowest for those that became specialized. Yet, off-farm diversification entry is hampered by living in a female-headed household, old age, low farm productivity and poor rural infrastructure.