The nexus between livelihood goals and livelihood strategy selection: Evidence from rural China

Abstract

This study explores the nexus between livelihood goals (LGs) and livelihood strategy (LS) selection preferences. We construct a measurement of three livelihood goals (survival, security, and self-respect goals) by combining qualitative and quantitative analysis and classify livelihood strategies into three groups (agricultural, non-agricultural, and diversification) based on household income sources. The multinomial logit model with fixed effects empirically estimates the relationship between livelihood goal indices and livelihood strategy selection with panel data (2010–2018) from the China Family Panel Studies surveys (CFPS). The results show that households with survival goals are more likely to choose the agricultural and diversification strategies and less likely to select the non-agricultural strategy. Households with security and self-respect goals are more likely to choose the non-agricultural strategy and are less likely to select the agricultural strategy. Families with a higher self-respect goal level are more flexible in livelihood strategy selection. The livelihood strategy selection preference is consistent in different regions of rural China when households pursue survival and security maximization. From the low-level survival goal to the high-level self-respect goal, consistent with a gradual transition from a low-income agricultural strategy to the high-income non-agricultural strategy; the diversification strategy is the transformed livelihood strategy in this process.