Household livelihood diversification in rural Africa

Abstract Diversification is a common livelihood strategy for rural households in developing countries, with diversification being either choice or necessity depending on individual household contexts. Using two waves of data (from 2009 and 2011) 1773 from eight countries sub‐Saharan Africa, we examined its drivers. We by considering involvement three activities: crop, livestock, non‐farm. Results indicated that 40% conducted all activities, but there was heterogeneity diversity levels. used correlated random effects model to identify the factors pushed pulled diversify their activities. Access non‐agricultural credit positively associated as it can catalyze non‐farm Drought had negative effect diversity. Area crop land positive number activities conducted. found 53% added removed at least one activity between 2011, addition most change. Our results demonstrated dynamic nature livelihoods importance shocks (such drought) resource endowments (land) understanding diversification.