Rural multidimensional poverty and livelihood mix: A micro level study in Bihar, India

Area of Science:

• Rural development studies
• Poverty reduction strategies
• Household livelihood analysis

Background:

• Understanding rural household livelihood dynamics is vital for effective pro-poor policy formulation.
• Existing poverty measures often fail to capture the complexities of rural poverty.
• The Sustainable Livelihood Framework suggests livelihood diversification mediates capital access and poverty reduction.

Purpose of the Study:

• To investigate rural poverty dynamics in India concerning livelihood capitals and diversification.
• To assess the mediating role of livelihood diversification between livelihood capitals and rural multidimensional poverty.
• To analyze access to livelihood capitals and livelihood diversification levels in rural Indian households.

Main Methods:

• Utilized the Rural Multidimensional Poverty Index (RMPI) for poverty measurement.
• Applied the Alkire-Foster method to assess access to livelihood capitals.
• Employed Simpson's Diversification Index (SDI) to quantify livelihood diversification.

Main Results:

• Observed low levels of livelihood diversification and limited access to livelihood capitals in the study area.
• Found that livelihood diversification does not mediate the relationship between livelihood capitals and rural multidimensional poverty.
• Confirmed that access to livelihood capitals is a significant factor in reducing rural poverty.

Conclusions:

• Access to livelihood capitals directly impacts poverty reduction in rural Indian communities.
• Livelihood diversification does not appear to be a mediating factor for poverty reduction in this context.
• Findings highlight the importance of enhancing livelihood capital access for rural poverty alleviation policies.