1 Introduction
2 Literature Review
3 Data and Descriptive Summaries
3.1 Study Sites and Data
3.2 Data Description
Variables | Whole sample (n = 2454) | By years | By reduced consumption due to shocks | ||
---|---|---|---|---|---|
2013 (n = 1227) | 2016 (n = 1227) | No-reduction (n = 1424) | Yes-reduction (n = 1030) | ||
Demographic characteristics | |||||
Risk attitude of head | 6.06 | 5.93 | 6.19***,a | 6.06 | 6.06a |
(2.43) | (2.58) | (2.27) | (2.48) | (2.36) | |
Dependency ratio | 1.41 | 1.53 | 1.28***,a | 1.40 | 1.41a |
(0.65) | (0.63) | (0.65) | (0.66) | (0.65) | |
Male head (yes = 1) | 0.82 | 0.83 | 0.81b | 0.83 | 0.81b |
(0.38) | (0.37) | (0.39) | (0.37) | (0.39) | |
Age of head (years) | 54.06 | 52.93 | 55.19***,a | 54.74 | 53.12***,a |
(12.39) | (12.48) | (12.21) | (12.59) | (12.05) | |
Household size (persons) | 3.95 | 4.07 | 3.82***,a | 3.84 | 4.09***,a |
(1.69) | (1.73) | (1.64) | (1.67) | (1.70) | |
Schooling years of head (years of schooling) | 6.90 | 7.01 | 6.78a | 7.12 | 6.59***,a |
(3.86) | (3.87) | (3.86) | (3.89) | (3.80) | |
Mean education of adult members (years of schooling) | 5.29 | 5.36 | 5.23a | 5.43 | 5.10***,a |
(2.89) | (2.90) | (2.88) | (3.04) | (2.66) | |
Head born in the village (yes = 1) | 0.67 | 0.67 | 0.67b | 0.67 | 0.66b |
(0.47) | (0.47) | (0.47) | (0.47) | (0.47) | |
Social and physical capital | |||||
Total land area (hectares) | 1.13 | 1.13 | 1.13a | 1.08 | 1.20a |
(2.30) | (2.74) | (1.75) | (2.23) | (2.40) | |
Farming laborers (persons) | 2.08 | 2.06 | 2.10a | 1.94 | 2.28 ***,a |
(1.15) | (1.15) | (1.15) | (1.10) | (1.18) | |
Asset per capita (PPP$) | 905.77 | 863.99 | 947.54a | 998.80 | 777.14***,a |
(1412.44) | (1306.86) | (1510.04) | (1639.69) | (1004.62) | |
Last year savings per capita (PPP$) | 1715.36 | 1239.29 | 2191.44***,a | 2209.28 | 1032.51***,a |
(5833.49) | (5500.73) | (6113.53) | (7146.80) | (3111.87) |
Variables | Whole sample (n = 2454) | By years | By reduced consumption due to shocks | ||
---|---|---|---|---|---|
2013 (n = 1227) | 2016 (n = 1227) | No-reduction (n = 1424) | Yes-reduction (n = 1030) | ||
Village characteristics | |||||
Number of enterprises | 0.83 | 0.95 | 0.71***,a | 0.92 | 0.70***,a |
(2.28) | (2.65) | (1.82) | (2.46) | (1.99) | |
Share of households with phone at home (%) | 88.14 | 84.69 | 91.60***,a | 88.67 | 87.41a |
(21.82) | (24.82) | (17.69) | (21.36) | (22.43) | |
Share of households with home cable internet (%) | 6.78 | 4.20 | 9.37***,a | 7.85 | 5.31***,a |
(11.10) | (6.99) | (13.57) | (12.42) | (8.74) | |
Distance to province center (km) | 37.78 | 37.97 | 37.60a | 36.35 | 39.76***,a |
(24.87) | (25.28) | (24.46) | (24.25) | (25.58) | |
Distance to district center (km) | 11.15 | 11.07 | 11.22a | 10.62 | 11.88***,a |
(8.63) | (7.89) | (9.31) | (8.17) | (9.17) | |
Commune characteristics | |||||
Achieved standard of planning (yes = 1) | 0.48 | 0.00 | 0.96***,b | 0.51 | 0.44***,b |
(0.50) | (0.00) | (0.19) | (0.50) | (0.50) | |
Achieved standard of irrigation (yes = 1) | 0.30 | 0.00 | 0.59***,b | 0.32 | 0.26***,b |
(0.46) | (0.00) | (0.49) | (0.47) | (0.44) | |
Achieved standard of roads for transportation (yes = 1) | 0.15 | 0.00 | 0.29***,b | 0.16 | 0.12***,b |
(0.35) | (0.00) | (0.45) | (0.37) | (0.33) | |
Achieved standard of rural markets (yes = 1) | 0.23 | 0.00 | 0.45***,b | 0.25 | 0.20***,b |
(0.42) | (0.00) | (0.50) | (0.43) | (0.40) | |
Share of households with access to electricity (%) | 95.61 | 94.37 | 96.86***,a | 95.85 | 95.28a |
(13.85) | (15.97) | (11.22) | (14.10) | (13.50) |
3.3 Measurement of Income Diversification
Variables | Whole sample (n = 2454) | By years | By reduced consumption due to shocks | ||
---|---|---|---|---|---|
2013 (n = 1227) | 2016 (n = 1227) | No-reduction (n = 1424) | Yes-reduction (n = 1030) | ||
Share of income sources | |||||
Agriculture (%) | 39.96 | 42.52 | 37.41***,a | 37.53 | 43.33***,a |
(32.02) | (32.98) | (30.83) | (31.42) | (32.55) | |
Wage employment (%) | 24.99 | 25.87 | 24.11a | 24.87 | 25.16a |
(29.16) | (29.93) | (28.35) | (29.41) | (28.81) | |
Self-employment (%) | 11.36 | 11.31 | 11.41a | 12.92 | 9.20***,a |
(23.72) | (23.93) | (23.51) | (24.96) | (21.71) | |
Other sources (%) | 23.69 | 20.31 | 27.07***,a | 24.68 | 22.32**,a |
(27.86) | (25.83) | (29.37) | (28.69) | (26.62) | |
Income and diversification index | |||||
Daily income per capita (PPP$) | 6.59 | 5.40 | 7.78***,a | 7.30 | 5.59***,a |
(7.59) | (6.48) | (8.39) | (7.98) | (6.89) | |
Income diversification index | 0.39 | 0.38 | 0.40***,a | 0.39 | 0.38a |
(0.20) | (0.20) | (0.20) | (0.20) | (0.20) |
3.4 Measurement of Poverty
Whole sample (n = 2454) | By years | By reduced consumption due to shocks | |||
---|---|---|---|---|---|
2013 (n = 1227) | 2016 (n = 1227) | No-reduction (n = 1424) | Yes-reduction (n = 1030) | ||
Parameters of multidimensional poverty | |||||
Income poverty (yes = 1) | 0.37 | 0.46 | 0.28***,a | 0.32 | 0.45***,a |
(0.48) | (0.50) | (0.45) | (0.47) | (0.50) | |
Asset poor (yes = 1) | 0.20 | 0.20 | 0.20a | 0.18 | 0.23***,a |
(0.40) | (0.40) | (0.40) | (0.38) | (0.42) | |
No schooling of school-age children (yes = 1) | 0.06 | 0.08 | 0.03***,a | 0.05 | 0.07a |
(0.23) | (0.28) | (0.17) | (0.22) | (0.25) | |
No primary education of adult members (yes = 1) | 0.01 | 0.01 | 0.01a | 0.01 | 0.00***,a |
(0.09) | (0.10) | (0.09) | (0.11) | (0.05) | |
Malnourished child (yes = 1) | 0.12 | 0.14 | 0.10***,a | 0.11 | 0.13a |
(0.33) | (0.35) | (0.30) | (0.32) | (0.34) | |
Unsafe drinking water (yes = 1) | 0.65 | 0.69 | 0.61***,a | 0.62 | 0.69***,a |
(0.48) | (0.46) | (0.49) | (0.49) | (0.46) | |
No improved sanitation (yes = 1) | 0.55 | 0.62 | 0.47***,a | 0.49 | 0.63***,a |
(0.50) | (0.49) | (0.50) | (0.50) | (0.48) | |
No access to electricity (yes = 1) | 0.02 | 0.02 | 0.02a | 0.02 | 0.02a |
(0.14) | (0.13) | (0.15) | (0.14) | (0.14) | |
Poor living conditions (yes = 1) | 0.15 | 0.19 | 0.11***,a | 0.13 | 0.18***,a |
(0.36) | (0.39) | (0.32) | (0.33) | (0.38) | |
Poverty indicators | |||||
Relative poverty at 50% lower than average income (yes = 1) | 0.38 | 0.41 | 0.35***,a | 0.33 | 0.46***,a |
(0.49) | (0.49) | (0.48) | (0.47) | (0.50) | |
Absolute poverty at a daily income per capita of PPP$ 3.20 (yes = 1) | 0.37 | 0.46 | 0.28***,a | 0.32 | 0.45***,a |
(0.48) | (0.50) | (0.45) | (0.47) | (0.50) | |
Multidimensional poverty (yes = 1) | 0.38 | 0.46 | 0.30***,a | 0.33 | 0.45***,a |
(0.49) | (0.50) | (0.46) | (0.47) | (0.50) |
4 Research Method
4.1 Identifying the Factors Affecting Households’ Resilience Strategy
4.2 Examining the Impacts of Resilience Strategy on Shocks and Poverty
Savings per capita (ln) | Income diversification | |
---|---|---|
Risk attitude of head | − 0.826* | − 0.047* |
(0.434) | (0.024) | |
Dependency ratio | 0.149 | 0.026 |
(0.295) | (0.018) | |
Male heada | 0.111 | 0.008 |
(0.581) | (0.038) | |
Age of head | 0.038* | − 0.001 |
(0.023) | (0.001) | |
Household size | − 0.029 | 0.008 |
(0.118) | (0.007) | |
Schooling years of head | 0.044 | − 0.001 |
(0.054) | (0.003) | |
Mean education of adult members | 0.064 | 0.008*** |
(0.062) | (0.003) | |
Head born in the villagea | 0.664 | 0.019 |
(0.691) | (0.050) | |
Total land area | 0.000 | − 0.000 |
(0.033) | (0.002) | |
Farming laborers | − 0.061 | 0.015* |
(0.143) | (0.008) | |
Asset per capita (ln) | 0.507*** | 0.013 |
(0.126) | (0.009) | |
Number of enterprises | 0.120*** | 0.004** |
(0.039) | (0.002) | |
Share of households with phones | − 0.002 | − 0.000 |
(0.005) | (0.000) | |
Share of households with home cable internet | 0.009 | 0.000 |
(0.015) | (0.001) | |
Distance to province center | 0.002 | − 0.000 |
(0.011) | (0.001) | |
Distance to district center | − 0.009 | 0.000 |
(0.018) | (0.001) | |
Achieved standard of planninga | 0.628** | 0.035** |
(0.306) | (0.017) | |
Achieved standard of irrigationa | 0.739* | 0.015 |
(0.439) | (0.024) | |
Achieved standard of roads for transportationa | − 0.801* | − 0.007 |
(0.426) | (0.024) | |
Achieved standard of rural marketsa | 0.538 | 0.013 |
(0.368) | (0.022) | |
Share of households with access to electricity | − 0.018 | − 0.001 |
(0.013) | (0.001) | |
Constant | 2.390 | 0.583*** |
(3.368) | (0.188) | |
Number of observations | 2454 | 2454 |
Wald chi2(21) | 99.74 | 215.14 |
Prob > chi2 | 0.000 | 0.000 |
Under identification | 0.018 | 0.018 |
Over identification | 0.544 | 0.473 |
Weak identification | 11.596 | 11.596 |
FE-IV | Hetero-IV | ||
---|---|---|---|
With savings per capita (ln) | With income diversification | ||
Savings per capita (ln) | − 0.067** | − 0.041** | |
(0.030) | (0.018) | ||
Income diversification | − 1.795* | − 0.838** | |
(0.931) | (0.348) | ||
Dependency ratio | 0.042 | 0.069* | − 0.026 |
(0.031) | (0.038) | (0.016) | |
Male heada | − 0.085 | − 0.061 | − 0.057* |
(0.088) | (0.109) | (0.031) | |
Age of head | − 0.001 | − 0.006 | − 0.002** |
(0.003) | (0.004) | (0.001) | |
Household size | 0.004 | 0.018 | 0.012 |
(0.015) | (0.018) | (0.008) | |
Schooling years of head | − 0.008 | − 0.013 | 0.002 |
(0.008) | (0.011) | (0.003) | |
Mean education of adult members | − 0.003 | 0.007 | − 0.003 |
(0.008) | (0.011) | (0.005) | |
Head born in the villagea | − 0.024 | − 0.047 | 0.022 |
(0.093) | (0.108) | (0.027) | |
Total land area | 0.003 | 0.002 | − 0.000 |
(0.007) | (0.006) | (0.004) | |
Farming laborers | 0.030 | 0.061** | 0.055*** |
(0.021) | (0.024) | (0.012) | |
Asset per capita (ln) | 0.031 | 0.019 | 0.021 |
(0.020) | (0.017) | (0.014) | |
Number of enterprises | 0.003 | 0.001 | − 0.003 |
(0.005) | (0.005) | (0.003) | |
Share of households with phones | − 0.001 | − 0.001 | − 0.001 |
(0.001) | (0.001) | (0.001) | |
Share of households with home cable internet | − 0.002 | − 0.002 | − 0.003** |
(0.002) | (0.002) | (0.001) | |
Distance to province center | − 0.002 | − 0.002* | 0.000 |
(0.001) | (0.001) | (0.000) | |
Distance to district center | 0.001 | 0.002 | 0.001 |
(0.002) | (0.002) | (0.001) | |
Constant | − 1.795* | − 0.838** | |
(0.931) | (0.348) | ||
Number of observations | 2454 | 2454 | 2454 |
Wald chi2(16) | 132.50 | 101.78 | |
Prob > chi2 | 0.000 | 0.000 | |
F( 17, 102) | 6.13 | ||
Prob > F | 0.000 | ||
Under identification | 0.000 | 0.001 | 0.001 |
Weak identification | 44.532 | 13.884 | 10.825 |
Over identification | 0.272 |
Relative povertya | Absolute povertya | Multidimensional povertya | |||||||
---|---|---|---|---|---|---|---|---|---|
FE-IV | Hetero-IV | FE-IV | Hetero-IV | FE-IV | Hetero-IV | ||||
With savings per capita (ln) | With income diversification | With savings per capita (ln) | With income diversification | With savings per capita (ln) | With income diversification | ||||
Savings per capita (ln) | − 0.056** | 0.048 | − 0.147*** | 0.006 | − 0.129*** | 0.029 | |||
(0.022) | (0.053) | (0.027) | (0.045) | (0.025) | (0.058) | ||||
Income diversification | − 1.484** | − 1.275* | − 3.911*** | − 1.636** | − 3.438*** | − 1.765** | |||
(0.727) | (0.764) | (1.145) | (0.738) | (0.962) | (0.864) | ||||
Dependency ratio | 0.015 | 0.037 | 0.091*** | 0.013 | 0.071 | 0.084*** | − 0.010 | 0.041 | 0.078** |
(0.037) | (0.036) | (0.031) | (0.048) | (0.058) | (0.027) | (0.045) | (0.049) | (0.031) | |
Male heada | − 0.020 | 0.000 | − 0.047 | 0.025 | 0.079 | − 0.027 | 0.066 | 0.113 | − 0.014 |
(0.067) | (0.076) | (0.042) | (0.084) | (0.122) | (0.039) | (0.068) | (0.106) | (0.045) | |
Age of head | 0.004 | − 0.000 | − 0.000 | 0.001 | − 0.009** | − 0.001 | 0.003 | − 0.007* | − 0.003** |
(0.003) | (0.002) | (0.001) | (0.003) | (0.004) | (0.001) | (0.003) | (0.004) | (0.001) | |
Household size | 0.033** | 0.044*** | 0.020** | 0.023 | 0.054** | 0.029*** | 0.040** | 0.067*** | 0.032*** |
(0.014) | (0.016) | (0.010) | (0.017) | (0.024) | (0.010) | (0.017) | (0.021) | (0.011) | |
Schooling years of head | 0.008 | 0.004 | − 0.016** | 0.010 | − 0.000 | − 0.011* | − 0.001 | − 0.010 | − 0.016* |
(0.007) | (0.009) | (0.008) | (0.009) | (0.015) | (0.007) | (0.007) | (0.013) | (0.009) | |
Mean education of adult members | − 0.009 | − 0.001 | − 0.008 | 0.003 | 0.024* | − 0.005 | 0.002 | 0.020 | − 0.005 |
(0.006) | (0.009) | (0.007) | (0.010) | (0.013) | (0.007) | (0.009) | (0.012) | (0.008) | |
Head born in the villagea | − 0.044 | − 0.062 | 0.139** | − 0.028 | − 0.077 | 0.126** | 0.024 | − 0.019 | 0.117 |
(0.097) | (0.104) | (0.066) | (0.118) | (0.171) | (0.061) | (0.098) | (0.146) | (0.073) | |
Total land area | − 0.003 | − 0.004 | − 0.013 | − 0.004 | − 0.006 | − 0.011 | − 0.004 | − 0.005 | − 0.012 |
(0.004) | (0.004) | (0.009) | (0.006) | (0.009) | (0.009) | (0.006) | (0.010) | (0.010) | |
Farming laborers | − 0.000 | 0.025 | 0.051** | 0.005 | 0.072** | 0.041* | − 0.011 | 0.048 | 0.054** |
(0.018) | (0.021) | (0.024) | (0.023) | (0.034) | (0.022) | (0.020) | (0.030) | (0.026) | |
Asset per capita (ln) | 0.001 | − 0.009 | − 0.110*** | 0.035 | 0.009 | − 0.081*** | 0.010 | − 0.013 | − 0.128*** |
(0.025) | (0.021) | (0.021) | (0.021) | (0.017) | (0.018) | (0.032) | (0.023) | (0.019) | |
Number of enterprises | 0.008* | 0.007 | 0.002 | 0.020*** | 0.016* | 0.005 | 0.014*** | 0.010 | 0.002 |
(0.005) | (0.005) | (0.004) | (0.006) | (0.009) | (0.004) | (0.005) | (0.007) | (0.005) | |
Share of households with phones | 0.000 | − 0.000 | 0.000 | − 0.000 | − 0.001 | − 0.000 | 0.000 | − 0.000 | 0.001 |
(0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | |
Share of households with home cable internet | − 0.001 | − 0.001 | − 0.002* | − 0.000 | − 0.001 | − 0.003* | 0.000 | − 0.000 | − 0.003** |
(0.001) | (0.001) | (0.001) | (0.002) | (0.003) | (0.001) | (0.002) | (0.002) | (0.002) | |
Distance to province center | 0.001 | 0.000 | 0.001 | 0.001 | − 0.000 | 0.001 | 0.001 | − 0.001 | 0.002* |
(0.001) | (0.001) | (0.001) | (0.001) | (0.002) | (0.001) | (0.001) | (0.002) | (0.001) | |
Distance to district center | − 0.002 | − 0.002 | − 0.003 | − 0.006** | − 0.005 | − 0.004* | − 0.005 | − 0.004 | − 0.003 |
(0.003) | (0.002) | (0.003) | (0.003) | (0.003) | (0.002) | (0.003) | (0.002) | (0.002) | |
Constant | 0.188 | 0.795** | 1.234*** | 0.285 | 1.884*** | 1.290*** | 0.289 | 1.695*** | 1.595*** |
(0.279) | (0.329) | (0.280) | (0.285) | (0.563) | (0.270) | (0.323) | (0.509) | (0.312) | |
Number of observations | 2454 | 2454 | 2454 | 2454 | 2454 | 2454 | 2454 | 2454 | 2454 |
Wald chi2(16) | 74.39 | 63.04 | 114.46 | 58.33 | 92.53 | 58.63 | |||
Prob. > chi | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |||
F( 17, 102) | 28.70 | 18.90 | 25.29 | ||||||
Prob. > F | 0.000 | 0.000 | 0.000 | ||||||
Under identification | 0.000 | 0.001 | 0.000 | 0.000 | 0.001 | 0.000 | 0.000 | 0.001 | 0.000 |
Weak identification | 44.532 | 13.884 | 12.188 | 44.532 | 13.884 | 12.188 | 44.532 | 13.884 | 12.188 |
Over identification | 0.088 | 0.111 | 0.168 |